One of the most talked about names of the last days Silvergate Bankannounced that it has stopped the SEN (Silvergate Exchange Network) platform, which institutions use to move to crypto exchanges.
In a statement on its website on Friday, the company said, “The bank, Silvergate Exchange Networktook a risk-based decision, effective immediately, to stop ”. “All other deposit-related services continue to operate.”
A spokesperson for the bank also sent a similar message to companies in the crypto industry. It was noteworthy that the spokesperson sent a limited message with the comment “Unfortunately, we do not have any additional information to share at the moment”.
Koinfinans.com As we reported, Silvergate Exchange Network is a 24/7 instant payment service that the bank’s customers can use to transact between them at any time, including at night and on weekends. The bank has announced a number of major crypto firms as clients for the service, including Binance US, Kraken, Gemini, and ErisX.
Cryptocurrency Hits Like a Bomb: Silvergate Sells Its Assets!
Silvergate had a tough week after it announced Wednesday that it would delay submission of its annual report due to questions from its auditors. In the same statement, the bank acknowledged facing investigations from bank regulators and the U.S. Department of Justice and said its ability to be an “ongoing concern” over the next year may be questionable.
A number of prominent crypto clients left the bank the next day, and the stock price tumbled nearly 60% before stabilizing somewhat on Friday.
You can follow the current price action here.