Circle, Paxos, Bitstamp and Galaxy join Coinbase in scaling back partnerships with Silvergate Bank

Several crypto firms person announced they volition standard backmost oregon outright terminate their narration with Silvergate Bank pursuing an announced probe into its alleged engagement successful the FTX collapse.

Amid quality that crypto speech Coinbase would nary longer judge oregon initiate payments with Silvergate, companies including stablecoin issuers Paxos and Circle and Mike Novogratz's Galaxy Digital person announced akin actions regarding their partnerships with the crypto bank. Galaxy Digital announced connected March 2 that it had stopped accepting oregon initiating transfers to the slope “out of an abundance of caution”.

In abstracted posts connected Twitter connected March 2, Paxos said it had already “discontinued each [Silvergate Exchange Network] transfers and wires” to the firm’s account, but would proceed to process outgoing payments. Circle added it was “in the process of unwinding definite services” with Silvergate, and Bitstamp said its slope transportation services would beryllium provided by “other planetary banking partners”.

“Please beryllium alert that Bitstamp cannot beryllium liable for immoderate funds deposited into the Silvergate slope account,” said the firm. “If you bash take to deposit funds into this account, you bash truthful astatine your ain risk.”

As a precautionary measurement successful airy of caller news, we are nary longer processing transfers with Silvergate.
Bank transportation services volition present beryllium provided by our different planetary banking partners. Bitstamp lawsuit funds stay unafraid and afloat available.
Read more: https://t.co/8Re4cXFstD

The termination of partnerships with Silvergate followed reports the slope was facing an investigation from the United States Department of Justice implicit its alleged engagement successful the FTX collapse. Former FTX main enforcement serviceman Sam Bankman-Fried — besides the people of a transgression probe — held an relationship with the crypto bank.

Related: Crypto slope Silvergate ranks arsenic the second- most-shorted banal connected Wall Street

Silvergate announced successful a March 1 filing with the U.S. Securities and Exchange Commission that it did not expect to taxable its study connected the 2022 fiscal twelvemonth by March 16. Shares of the crypto bank’s banal person already fallen much than 55% successful the past 24 hours, reaching $5.97 astatine the clip of publication.