Silvergate Bank shut down the Silvergate Exchange Network (SEN) platform that is used by corporate customers to move money to crypto exchanges 24/7.
The U.S.-based crypto-focused bank said the move was a risk-based decision.
- Silvergate underlined that all other deposit-related services would continue to operate.
- SEN platform’s clients included major crypto firms such as Binance.US, Kraken, Gemini, and ErisX.
- The move came right after Silvergate notified the U.S. Securities and Exchange Commission (SEC) that it would fail to file its annual 10-K report for the 2022 fiscal year on time.
- In
the late filing notice, the bank asked for another two weeks to
complete the report and warned that it might not survive another 12
months since it might be less than well-capitalized.
- Following
the notice, many crypto-related firms, including Coinbase, Crypto.com,
Kraken, Circle, Paxos, Bitstamp, Galaxy Digital, and LedgerX, cut ties
with Silvergate Bank.
- The bank’s stock price also dropped almost 60% due to the rising concerns around the crypto market.
