Yet another crypto-related firm is turning its back to Silvergate Bank.
Prominent cryptocurrency exchange Kraken is facing issues with its deposits and withdrawals connected to the Silvergate automated clearing house (ACH).
On March 22nd, numerous online reports from alleged Kraken users revealed that the crypto exchange had informed them about a suspension of ACH deposits and withdrawals. The halt is set to take effect starting March 27th.
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Based on the email snippet shared by Twitter user MikeBurgersburg, Kraken customers will no longer be able to access deposit options through Plaid or withdrawal options via ACH Silvergate.
In the announcement, Kraken highlighted that other services, such as ACH instant purchases through online banking, would not be impacted.
To facilitate uninterrupted funding, Kraken has encouraged users to explore alternative funding methods, such as MVB Bank for Fedwire deposits and withdrawals.
Kraken assured its users that it is working “to make ACH funding available as soon as possible.”
Kraken is not the only crypto-related firm cutting all ties with recently collapsed crypto-friendly banks. Right before Silvergate Capital Corporation revealed plans to liquidate Silvergate Bank, crypto firms, including Coinbase, Paxos, Circle, Galaxy Digital, Gemini, Crypto.com, and Blockchain.com, terminated their partnerships with the bank.
It is worth noting that in early March, the US banking industry went under when banks like Signature Bank, Silvergate Bank, and Silicon Valley Bank shut their doors.