Silvergate Capital Corp (SI.N) has been dropped by a number of cryptocurrency heavyweights, such as Coinbase Global Inc (COIN.O) and Galaxy Digital as their banking partner after the lender’s latest filing raised concerns about its ability to continue business.
La Jolla, California-based Silvergate, one of the most powerful banks in the digital asset industry, has been dealing with the aftermath of FTX’s collapse in November, which prompted concerned investors to withdraw $8 billion in deposits in the last three months of the year.
Following is a list of crypto firms that have issued statements in response to the developments at the embattled bank:
Coinbase Global:
The crypto exchange said it has stopped accepting or initiating payments to or from Silvergate. The conglomerate also stated it has little exposure to the crypto-focused bank.
Crypto.com:
A spokesperson for the crypto exchange stated in an email to Reuters that it was temporarily ceasing USD deposits and withdrawals through Silvergate out of caution.
Gemini:
The cryptocurrency company announced on Twitter that it has ceased accepting customer funds and processing withdrawals through the automated clearing house (ACH) and bank transfers via Silvergate on the Gemini exchange.
Galaxy Digital:
In wake of recent developments, the company announced on twitter that it has stopped receiving or conducting transfers to Silvergate, adding that it has no material exposure to the bank.
Bitstamp:
Due to the current events, the crypto exchange said that it has stopped processing transfers with Silvergate as a preventative measure, adding that client funds remain protected and fully available.
Circle:
The company stated that it is aware of the concerns surrounding Silvergate and is in the process of terminating specific services with the bank and alerting customers.
Paxos:
The cryptocurrency firm stated that it has no material exposure to Silvergate, but that due to recent developments with the bank, it has ceased all Silvergate Exchange Network transfers and wires to its Silvergate account.
Cboe Clear Digital:
The company said it would temporarily cease all transactions with Silvergate Bank at this time until further notice.
Tether:
The company’s chief technology officer said on Twitter that it has no association with Silvergate.
