Silvergate Bank Discontinues Cryptocurrency Transfers

Silvergate Bank Discontinues Cryptocurrency Transfers

Silvergate Bank announced the termination of the network for cryptocurrency transfers Silvergate Exchange Network (SEN), writes Reuters. The decision comes days after the crypto-focused bank said it was uncertain about the viability of its business.

“Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational,” Silvergate said in a statement.

Silvergate is an American bank specializing in cryptocurrencies. The bank operates the Silvergate Exchange Network (SEN) payment system, which allows crypto exchanges and other customers to exchange cryptocurrencies for fiat money around the clock. Many of the world’s leading miners, exchanges, and institutional investors have used Silvergate to list and transfer billions of dollars of assets.

The bank posted a loss of $949 million for 2022. On March 1, Silvergate announced that it would delay filing its annual financial report with the U.S. Securities and Exchange Commission (SEC) for two weeks as it now reassesses its ability to continue operations and losses from last year , the amount of which may still increase.

After the bank postponed the report to the SEC, large crypto companies began to announce the termination of work with it. Among them are Coinbase, Gemini and exchanges, Paxos and Circle stablecoin issuers, and Galaxy Digital.

Crypto exchange Bibyt also announced the suspension of US dollar deposits via wire transfer (including SWIFT), citing “partner outages,” without naming the partner. Withdrawals in this way will be available until March 10th. The restriction did not affect the purchase and sale of cryptocurrencies using bank cards.

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