According to a tweet posted on March 13 by Hong Fang, CEO of Okcoin, the US subsidiary of cryptocurrency exchange OKX was not exposed to the defunct US technology bank Silicon Valley Bank (SVB). However, Fong stated that Okcoin’s US dollar deposits had been “immediately suspended” due to regulatory intervention at Signature Bank, Okcoin’s main partner for its clients’ dollar transactions.
On March 12, New York state regulators shut down Signature Bank, a leading financial institution for transferring cryptocurrency, citing a “systemic risk exception” following the collapse of SVB. In addition to suspending dollar deposits, Fang wrote that “over-the-counter services will also be temporarily paused,” including its quick buy and recurring buy features. Okcoin also stated that the suspension extends to “credit card cryptocurrency transactions” and “USD cryptocurrency pair trading.”
In response to user questions, Fang clarified that “all corporate and customer funds are safe” and that “USD withdrawals are not affected.”. The pace of processing will be subject to the operation of the bank.” All cryptocurrency deposit and withdrawal functions remain intact, including those for US dollar stablecoins. Furthermore, the suspension appears limited to dollar deposits, as other methods of Fiat deposits, such as those made in euros, are not affected.
“Our team is working very hard on alternative channels and real-time solutions. We have been through much worse times since our inception. If this weekend has told us anything, it is the meaning of the future we are building. Our commitment to you hasn’t changed either.”
Crypto-friendly Signature Bank was a key partner for many cryptocurrency firms, including Coinbase, Celsius, and Paxos, which have since disclosed that they held balances at the bank. US federal regulators have declared that Signature Bank depositors will receive their full balances after closing.
1/ @okcoin has been closely monitoring the situation with @NYDFS & Signature Bank.
The most important thing is that all customer funds are safe!
Here’s what’s going on. ⤵️
—Okcoin (@Okcoin) March 13, 2023
1/ @okcoin has been closely monitoring the situation with @NYDFS & Signature Bank.
The most important thing is that all customer funds are safe!
This is what is happening. ⤵️
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