A Total of 4 Crypto Companies Joined Coinbase

Following the announcement of an inquiry into Silvergate Bank‘s potential participation in the FTX collapse, several cryptocurrency companies declared they would reduce or entirely end their association with the bank. In this direction, a total of 4 crypto companies joined Coinbase.

A Total of 4 Crypto Companies Joined Coinbase

Companies like stablecoin issuers Paxos, Circle, Bitstamp, and Galaxy Digital have made similar steps regarding their agreements with the crypto bank in response to reports that cryptocurrency exchange Coinbase would no longer accept or begin payments with Silvergate. On March 2, Galaxy Digital declared that “out of an abundance of caution,” it had ceased receiving or starting transfers to the bank.

On March 2, Paxos stated in separate tweets that it had discontinued all Silvergate Exchange Network transfers and wires to the company’s account but that it would still handle outgoing payments.

Bitstamp stated its bank transfer services would be provided by other global banking partners, while Circle said it was in the process of unwinding certain services with Silvergate.

About Silvergate

In response to rumors that the bank was under investigation by the US Department of Justice for its alleged role in the FTX bankruptcy, Silvergate’s agreements with other companies were terminated. Sam Bankman-Fried, a former CEO of FTX who has been accused of wire fraud, securities fraud, and money laundering, had an account with the cryptocurrency bank. Silvergate stated in a filing on March 1 with the U.S. Securities and Exchange Commission that it did not anticipate submitting its report on the 2022 fiscal year by March 16 as planned.



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