Digital Assets: Key Crypto Players Sever Links With Silvergate Capital

March 3, 2023 | Digital Assets, Latest News, News

Their action followed after Silvergate delayed the filing of its annual report.

On March 2nd, four firms related to cryptocurrency announced that they will no longer be doing business with Silvergate Capital (NYSE: SI). This decision was made after Silvergate revealed in an SEC filing that it was delaying its annual report due to ongoing investigations. (PYMNTS)

The bank said it was examining “certain regulatory and other inquiries and investigations that are pending with respect to the company.”

Coinbase announced on Twitter that it will no longer accept payments to or from Silvergate, but assured its clients that their funds are safe and that it will continue to facilitate cash transactions with other banking partners.

Circle said on Twitter that it is in the process of winding down its services with Silvergate and notifying its customers, but emphasized that it has relationships with multiple banking partners and is operating normally.

Gemini took to Twitter to say that it has stopped accepting customer deposits and processing withdrawals via Silvergate, but stated that it holds all customer funds in U.S.-insured banks or money market funds.

Paxos tweeted that it has discontinued transfers and wires to its Silvergate account but emphasized that it has minimal exposure to the bank and prioritizes protecting its customers’ funds.

The implications of Silvergate’s ongoing investigations are uncertain, but the crypto market has already demonstrated a loss of confidence.

Crypto prices have plunged as investors pressed the sell button fearing Silvergate’s potential bankruptcy and its impact on asset prices.

As this is being written, bitcoin is trading nearly 5% lower at $22,334.

Related Story:  As Withdrawals Surge, Crypto Focused Banks Borrow Billions From Home-Loan Banks

Image by WorldSpectrum from Pixabay

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
March 31, 2023     Digital Assets, News, Venture Capital

Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
March 31, 2023     ESG and Sustainability, FinTech, News

Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
March 31, 2023     Latest News, News, Venture Capital

The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
March 31, 2023     Artificial Intelligence, News

Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….