Silvergate Bank, the financial institution rumored to be in problems linked to the collapse of the chain in the cryptocurrency sector, has suspended its remittance network to cryptocurrency exchanges.
According to a dawn announcement on March four (Vietnam time), Silvegate Bank, the hottest title caught up in the cryptocurrency industry’s liquidity crisis, has made the decision to shut down the Silvergate Exchange Network (SEN). cryptocurrency exchanges.
“Effective quickly, Silvergate Bank has made the decision to deactivate the Silvergate Exchange Network (SEN). Other deposit solutions will carry on as typical.
As reported by Coinlive, SEN is Silvergate’s most important products for attracting crypto partners, permitting them to consider USD deposits from buyers and convert them into the currency on the exchange, as properly as circulate cash for each and every other. SEN the moment presented solutions to quite a few cryptocurrency giants in the US and all-around the globe, which include Coinbase, FTX, Kraken, Gemini, Bitstamp, Crypto.com, Binance.US stablecoin issuer Circle, Paxos…
However, given that the bankruptcy of FTX in late 2022, Silvergate has been hit really hard and has witnessed a withdrawal of up to $eight billion. The financial institution notified the SEC in early March that it would not be ready to file its fiscal statements in time for the reason that it was reevaluating its operations, revaluing its assets and probably dealing with investigations by the U.S. government.
The information has raised worries that Silvergate is in extra of a crisis than previously believed. Faced with investor confusion, Coinbase, Circle, Paxos, Gemini, and Galaxy Digital respectively announced they have been stopping assistance of deposit and withdrawal transactions to Silvergate accounts, primarily cutting ties with the financial institution.
The cryptocurrency market place noticed a hefty dump in the morning of March three mostly due to unfavorable information from Silvergate.
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