Factbox: Silvergate crisis: Majors in the crypto industry drop struggling lenders
March 2 (Reuters) – A number of cryptocurrency heavyweights including Coinbase Global Inc ( COIN.O ) and Galaxy Digital dropped Silvergate Capital Corp ( SI.N ) as their banking partner after the lender’s latest filing raised questions about its ability to remain in the business. .
La Jolla, Calif.-based Silvergate, one of the most influential banks in the digital asset industry, has been reeling from the fallout from FTX’s November collapse that prompted spooked investors to withdraw $8 billion in deposits in the last three months of the year.
Here is a list of crypto firms that issued statements in light of developments in the controversial bank:
Coinbase Global (COIN.O):
The crypto exchange said it no longer accepted or initiated payments to or from Silvergate. The firm also said it has minimal exposure to the crypto-focused bank.
Crypto.com:
A spokesperson for the crypto exchange said in an email to Reuters that it temporarily suspended USD deposits and withdrawals via Silvergate as a precaution.
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Gemini:
The crypto firm said on Twitter that it has stopped accepting customer deposits/withdrawal processing via Automated Clearing House (ACH) and wire transfers through Silvergate on the Gemini exchange.
Galaxy Digital:
The company said in a tweet in light of the latest development that it has stopped accepting or initiating transfers to Silvergate, adding that it has no material exposure to the bank.
Bit stamp:
The crypto exchange said that as a security measure in light of recent news, it no longer processes transfers with Silvergate, adding that client funds remain secure and fully accessible.
Circle:
The firm said it is sensitive to the concerns surrounding Silvergate and is in the process of discontinuing certain services with the bank and notifying customers.
Paxos:
The crypto firm said it has no significant exposure to Silvergate, but added that in light of recent developments with the bank, it has suspended all Silvergate Exchange Network transfers and transfers to its Silvergate account.
Cboe Clear Digital:
The company said it would stop all transactions with Silvergate Bank at this point until further notice.
Tethers:
The company’s chief technology officer said on Twitter that it has no exposure to Silvergate.
Reporting by Manya Saini in Bengaluru; Editing by Maju Samuel
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