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Factbox-Silvergate crisis: Crypto industry majors drop embattled lender

Published 03/02/2023, 01:50 PM
Updated 03/02/2023, 01:55 PM
© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/File Photo
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(Reuters) - A slew of cryptocurrency heavyweights including Coinbase (NASDAQ:COIN) Global Inc and Galaxy Digital ditched Silvergate Capital (NYSE:SI) Corp as their banking partner after the lender's latest filing raised questions about its ability to stay in business.

La Jolla, California-based Silvergate, one of the most influential banks in the digital asset industry, has been reeling from the fallout of FTX's collapse in November that prompted spooked investors to pull $8 billion in deposits in the last three months of the year.

Here is a list of crypto firms which issued statements in light of the developments at the embattled bank:

Coinbase Global:

The crypto exchange said it was no longer accepting or initiating payments to or from Silvergate. The firm also said it has minimum exposure to the crypto-focused bank.

Crypto.com:

A spokesperson for the crypto exchange said in an emailed statement to Reuters it was temporarily suspending USD deposits and withdrawals via Silvergate out of caution.

Gemini:

The crypto firm said on Twitter it has stopped accepting customer deposits/processing withdrawals 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 recent developments that it has stopped accepting or initiating transfers to Silvergate, adding that it has no material exposure to the bank.

Bitstamp:

The crypto exchange said that as a precautionary measure in light of recent news it is no longer processing transfers with Silvergate, adding that client funds remain secure and fully available.

Circle:

The firm said it is sensitive to the concerns around Silvergate and is in the process of unwinding certain services with the bank and notifying customers.

Paxos:

The crypto firm said it does not have any material exposure to Silvergate but added that in light of recent developments with the bank, it has discontinued all Silvergate Exchange Network transfers and wires to its Silvergate account.

Cboe Clear Digital:

The company said it would be pausing all transactions with Silvergate Bank at this time until further notice.

© Reuters. FILE PHOTO: Representations of cryptocurrencies Bitcoin, Ethereum and DogeCoin are placed on PC motherboard in this illustration taken, June 29, 2021. REUTERS/Dado Ruvic/File Photo

Tether:

The company's chief technology officer said on Twitter it has no exposure to Silvergate.

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