Cryptocurrency

Gemini, Crypto.com, Bitstamp, MicroStrategy distance themselves from Silvergate

As seen in various March 2 statements, several cryptocurrency companies have at least temporarily stopped accepting deposits through Silvergate Bank.

Multiple Crypto Firms Block Transfers

especially gemini Said We no longer accept wire transfer requests for deposits and withdrawals via ACH or Silvergate Bank. It says it is “actively monitoring the situation” and has no customer or GUSD funds in custody at Silvergate.

Bitstamp as well blog post Temporary suspension of support for USD transfers through Silvergate. It also said it had temporarily suspended the Silvergate Exchange Network (SEN) service. The two companies used to work closely together, as Bitstamp partnered with Silvergate to launch his SEN leveraged product.

Crypto.com said separately crypto slate “USD deposits and withdrawals through Silvergate have been temporarily suspended” on that exchange. It added that funds sent this way would be rejected, and said it had notified users of the policy change.

MicroStrategy says We have a loan from Silvergate coming due in early 2025. Assured users that loans would not be accelerated if Silvergate failed. It also added that it has no bitcoin collateral held at Silvergate or any other financial relationship with the bank.

Since MicroStrategy does not offer retail cryptocurrency exchange services, it did not accept money transfers through Silvergate from the beginning.

Various other companies have acted before

Other companies such as Coinbase, Circle and Paxos similarly distanced themselves from Silvergate today. Tether, meanwhile, said it had no contact with Silvergate.

Even before today’s massive outflow, it was reported Tuesday that LedgerX will end its reliance on Silvergate and instead turn to competing service Signature Bank.

Yesterday, Silvergate announced it would file a 10-K financial report, revealing pending regulatory investigations. After the news, the stock’s value suddenly dropped. The stock fell further today as various companies cut ties with Silvergate.

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