Silvergate Capital Corporation was once one of the most preferred banking institutions for cryptocurrency business, but the entity has faced a lot of issues over the past few weeks.
The last saw the bank closing its crypto payment service called Silvergate Exchange Network.
“Effective today, Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational,” the company’s statement read. .
- The service allowed investors to make 24/7 transfers to crypto exchanges, which was one of the bank’s most widely used products. It worked much faster than traditional bank transfers which could take days.
- However, the bank raised eyebrows earlier this week when it revealed operational issues and said it had to delay its annual report.
- Apart from its shares plummeting by more than 30% within hours, the announcement also prompted several crypto giants, such as Kraken and Coinbase, to dump Silvergate and its services.
- Being one of the biggest players in the traditional financial sector, the news has affected the entire crypto market as well. Bitcoin fell to a multi-week low below $22,000 within hours, while the total market capitalization fell by $50 billion in one day.
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