Several cryptocurrency companies have announced that they will reduce or terminate their relationship with Silvergate Bank following an announced investigation into its alleged involvement in the FTX collapse.
Amid news that crypto exchange Coinbase would no longer accept or initiate payments with Silvergate, companies including stablecoin issuers Paxos and Mike Novogratz’s Circle and Galaxy Digital have announced similar actions in connection with their partnerships with the crypto bank. Galaxy Digital advertisement on March 2 that it had stopped accepting or initiating transfers to the bank “out of an abundance of caution.”
In separate posts on Twitter on March 2, Paxos said that it had already “suspended all transfers and drafts [de Silvergate Exchange Network]” to the firm’s account, but would continue to process outgoing payments. Circle added that it was “in the process of rolling back certain services” with Silvergate, and Bitstamp said that its wire transfer services would be provided by “other global banking partners.”
“Please note that Bitstamp cannot be held responsible for any funds deposited into Silvergate’s bank account,” the firm said. “If you decide to deposit funds into this account, you do so at your own risk.”
As a precautionary measure in light of recent news, we are no longer processing transfers with Silvergate.
Bank transfer services will now be provided by our other global banking partners. Bitstamp client funds remain secure and fully available.
Read more: https://t.co/8Re4cXFstD—Bitstamp (@Bitstamp) March 2, 2023
As a precaution in light of recent news, we no longer process transfers with Silvergate.
Wire transfer services will now be provided by our other global banking partners. Bitstamp client funds remain safe and fully available.
The termination of the association with Silvergate came after it was learned that the bank was facing an investigation by the US Department of Justice for its alleged involvement in the bankruptcy of FTX. Former FTX CEO Sam Bankman-Fried — also the subject of a criminal investigation — had an account at the crypto bank.
Silvergate announced in a March 1 filing with the United States Securities and Exchange Commission that it did not expect to file its fiscal 2022 report before March 16. Shares of the crypto bank have already fallen more than 55% in the past 24 hours, hitting $5.97 at press time.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.