The year 2023 promises to be difficult, even horrific, for Silvergate. Indeed, after recently experiencing a 10% drop in its shares, the California bank is now witnessing a series of abandonments from its crypto partners. Like what misfortune never comes alone.
Group of crypto companies announces divorce from Silvergate
It all started with the dismissal of 200 employees at the start of the year following a 46% devaluation of the price of its shares. And that was followed by the announcement of a loss of around $1 billion for Silvergate’s fourth quarter 2022 results.
Bulk, nothing is going right at Silvergate Bank.
Coinbase is cautious
” At Coinbase, all customer funds remain safe, accessible, and available.
In light of recent events and out of an abundance of caution, Coinbase is no longer accepting or initiating payment to or from Silvergate. »
In other words, Brian Armstrong’s pro-staking crypto exchange will no longer use Silvergate’s services. Now, it will turn to Signature Bank to facilitate dollar payments for its institutional clients.
Paxos cuts ties with Silvergate
” In light of recent events with Silvergate Bank, Paxos has halted all SEN transfers and transfers to our Silvergate account. Paxos will continue to process all outgoing payments. »
Paxos, whose BUSD issuance saw a stoppage injunction by the SEC, also argued the non-existence of “ material exhibition at Silvergate “. Going forward, the company will focus on protecting its clients’ funds and assets.
Circle alerted by the situation
” We maintain relationships with several banking partners. We are sensitive to the concerns regarding Silvergate and are in the process of ending certain services with them and notifying customers. Otherwise, Circle services, including USDC, are operating normally. »
This Twitter thread from Circle ends by highlighting a plurality of standby banking partners. Enough to avoid insomnia among its customers.
Galaxy Digital, Cboe Digital and Bitstamp too
Mike Novogratz’s crypto-focused financial services firm Galaxy Digital, trading platform Cboe Digital and cryptocurrency exchange Bitstamp have also followed suit.
To drive the point home, Silvergate has just recorded a loss of 10% of the value of its shares. And the SEC, more aggressive than ever, is preparing to investigate this California-based banking establishment.
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