The largest American crypto exchange Coinbase has ceased cooperation with the disgraced crypto bank Silvergate.
“In light of recent events and as a matter of precaution, Coinbase is no longer accepting or initiating payments to and from Silvergate, and will also facilitate institutional clients’ money transactions with our other banking partners,” it said. in the message companies.
At Coinbase all client funds continue to be safe, accessible & available.
In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.
— Coinbase (@coinbase) March 2, 2023
Messages were sent to Coinbase Prime customers in which the firm announced that it was changing its banking partner to Signature Bank. The decision is effective immediately: “Coinbase Prime has decided to make changes to the list of our banking partners for processing transactions involving USD. Withdrawals and deposits will be made through Signature Bank and the decision is effective immediately.”
Coinbase’s decision to terminate cooperation followed in response statement Silvergate that it will not be able to file its annual financial statements on time. The organization also cited “a number of circumstances” that affected the ability to submit documentation on time. The bank believes it may be “less than well capitalized” and that it is “overvaluing its business”. New bond issues in January and February 2023 were an important factor. Silvergate’s going to reflect [по ним] losses.”
As a result of these announcements, Silvergate shares reached historic lows in pre-market trading.
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