Coinbase announces it is no longer using the ailing Silvergate Bank

Crypto trading platform Coinbase announced on Twitter that it is no longer accepting payments to and from Silvergate Bank currently in turmoil.

Indeed, Coinbase advocating the “utmost caution”, “in light of recent events” tweeted that it would no longer facilitate payments using Silvergate. Crypto.com and Gemini also said that deposits and withdrawals via the bank have been temporarily suspended, while Bitstamp revealed in a blog post to migrate its operations to its big rival, Signature Bank.

After announcing losses of $1 billion for the fourth quarter of 2022, the partner bank of several crypto companies caused panic in the markets by announcing that it would not be able to publish its annual report scheduled for March 16, 2023, the famous annual form 10-k to be filed with the U.S. Securities and Exchange Commission (SEC).

An announcement that caused the SI share to fall by more than 50%, the bank also stressed the fact that it is encountering problems that could impact the operation of the banking institution.

Following these revelations, the crypto exchange Coinbase has therefore decided, “out of caution”, to abandon this banking partner and switch to Signature Bank.

“At Coinbase, all customer funds continue to be safe, accessible and available.

News that also sent COIN, Coinbase’s stock price, tumbling.

The problems faced by Silvergate are further worrying the crypto community as the bank is a partner in several crypto exchanges. In particular, Silvergate was heavily impacted by the bankruptcy of FTX, which was one of its biggest partners.

In its tweets, Coinbase was keen to point out that it has very little exposure with Silvergate bank if it were to fail soon.