Gemini, Crypto.com, Bitstamp, MicroStrategy distance themselves from Silvergate

Several cryptocurrency companies have at least temporarily stopped accepting deposits made via Silvergate Bank, as seen in various statements on March 2.

Multiple crypto companies block transfers

Gemini notably said it has stopped accepting deposits and withdrawal requests made via ACH or wire transfer through Silvergate Bank. It stated that it is “actively monitoring the situation” and has no customer or GUSD funds stored with Silvergate.

Bitstamp similarly stated in a blog post that it has temporarily stopped supporting U.S. dollar transfers via Silvergate. It also said that it has temporarily halted Silvergate Exchange Network (SEN) services. The two companies were once closely partnered, as Bitstamp served as a launch partner for Silvergate’s SEN Leverage product.

Crypto.com separately told CryptoSlate that “USD deposits and withdrawals via Silvergate have been temporarily suspended” on its exchange. It added that funds transferred in this way would be rejected and said that it has informed users of the policy change.

MicroStrategy stated that it has a loan from Silvergate that is due in early 2025. It assured users that the loan would not accelerate if Silvergate fails. It added that it has no Bitcoin collateral stored with Silvergate nor any other financial relationship with the bank.

MicroStrategy does not provide retail crypto exchange services and thus did not accept transfers via Silvergate to begin with.

Various other firms acted earlier

Other firms, including Coinbase, Circle, and Paxos, similarly distanced themselves from Silvergate earlier today. Tether, meanwhile, said it had no exposure to Silvergate.

It was also reported on Tuesday — prior to today’s mass exodus — that LedgerX would end its reliance on Silvergate and instead turn to the competing service Signature Bank.

Yesterday, Silvergate announced that it would file a late 10-K financial report and disclosed pending regulatory inquiries. The value of its stock suddenly fell following that news. Share values fell further today as various firms cut ties with Silvergate.