{"id":134301,"date":"2023-03-03T14:01:36","date_gmt":"2023-03-03T14:01:36","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=134301"},"modified":"2023-03-03T14:29:01","modified_gmt":"2023-03-03T14:29:01","slug":"tether-paxos-gemini-and-other-big-names-cut-ties-with-silvergate","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/tether-paxos-gemini-and-other-big-names-cut-ties-with-silvergate\/","title":{"rendered":"Tether, Paxos, Gemini, and Other Big Names Cut Ties With Silvergate"},"content":{"rendered":"<p style=\"text-align: justify\">Businesses in the digital asset sector are keeping their distance from Silvergate after the crypto-friendly bank <strong>postponed submitting its annual 10-K report<\/strong> to the Securities and Exchange Commission (SEC).<!--more--><\/p>\n<p style=\"text-align: justify\"><strong>Tether, Coinbase, Paxos, Galaxy Digital, Gemini, BitStamp, Crypto.com, and Circle<\/strong> are a few of the popular crypto firms that severed connections with Silvergate. However, some of them said they didn&#8217;t have exposure to it in the first place.<\/p>\n<p style=\"text-align: justify\">Notably, Gemini said on Thursday that <strong>it no longer accepts withdrawal and deposit requests<\/strong> made through the California-based bank via ACH or wire transfer. It indicated that it is &#8220;actively monitoring the situation&#8221; and has no customers or GUSD cash kept with Silvergate.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">2\/ In addition, we have stopped accepting customer deposits \/ processing withdrawals via ACH and wire transfers through Silvergate to the <a href=\"https:\/\/twitter.com\/Gemini?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@Gemini<\/a> exchange.<\/p>\n<p>&mdash; Gemini (@Gemini) <a href=\"https:\/\/twitter.com\/Gemini\/status\/1631346063209635844?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">March 2, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><strong>MicroStrategy<\/strong>, which has more than 130,000 bitcoins on hand, has affirmed that Silvergate is not the custodian of their BTC collateral. A bankruptcy or insolvency event wouldn&#8217;t &#8220;accelerate&#8221; the loan repayment, the Michael Saylor-founded company noted, adding it wouldn&#8217;t be due to return a loan from Silvergate until Q1 2025.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">We have a loan from Silvergate not due until Q1 \u201825. There are mkt concerns re SI\u2019s fin. condition. For anyone wondering, the loan wouldn\u2019t accelerate b\/c of SI insolvency or bankruptcy. Our BTC collateral isn\u2019t custodied w\/ SI &amp; we have no other financial relationship w\/ SI.<\/p>\n<p>&mdash; MicroStrategy (@MicroStrategy) <a href=\"https:\/\/twitter.com\/MicroStrategy\/status\/1631366897378680835?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">March 2, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2 style=\"text-align: justify\">More Crypto Companies Ditch Silvergate<\/h2>\n<p style=\"text-align: justify\">Similar declarations were also made by <a href=\"https:\/\/crypto-economy.com\/coinbase-review\/\" target=\"_blank\" rel=\"noopener\"><strong>Coinbase,<\/strong><\/a> the largest cryptocurrency exchange in the United States, which noted that due to recent events and extreme caution, it is no longer accepting or initiating payments to or from Silvergate.<\/p>\n<p style=\"text-align: center\">It said,<em> &#8220;Coinbase has de minimis corporate exposure to Silvergate.&#8221;<\/em><\/p>\n<p style=\"text-align: justify\"><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone size-full wp-image-134320\" src=\"https:\/\/crypto-economy.com\/wp-content\/uploads\/2023\/03\/Crypto-Companies-Cut-Ties-With-Silvergate-1.png\" alt=\"Tether, Circle, Gemini, and Other Big Names Cut Ties With Silvergate\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/03\/Crypto-Companies-Cut-Ties-With-Silvergate-1.png 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/03\/Crypto-Companies-Cut-Ties-With-Silvergate-1-300x109.png 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2023\/03\/Crypto-Companies-Cut-Ties-With-Silvergate-1-768x279.png 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><strong>Paxos<\/strong> also weighed in yesterday, arguing that <strong>it has no significant exposure to the crypto-friendly bank<\/strong>. The security of its customers&#8217; money and assets has always been a top priority for Paxos, according to a tweet from the company, and as a result, they work with a wide range of financial partners.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Statement from Paxos on Silvergate Bank: Paxos does not have any material exposure to Silvergate. Paxos\u2019 priority has always been the protection of its customers\u2019 funds and assets, and as such we leverage a diverse network of banking partners.<\/p>\n<p>&mdash; Paxos (@PaxosGlobal) <a href=\"https:\/\/twitter.com\/PaxosGlobal\/status\/1631294873570799617?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">March 2, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\"><strong>Silvergate recorded a net loss of $1 billion <\/strong>in Q4 2022 as a result of the unexpected collapse of FTX in November, which raised questions about the company&#8217;s possible financial difficulties.<\/p>\n<p style=\"text-align: justify\">However, the bank <strong><a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1312109\/000110465923027353\/tm238251d1_nt10k.htm\" target=\"_blank\" rel=\"noopener\">disclosed<\/a><\/strong> that it will submit a late 10-K financial report and reveal any open regulatory inquiries. <strong>That announcement resulted in a rapid decline in the stock&#8217;s value<\/strong>. Share prices fell, even more, today as more companies severed connections with and ditched Silvergate.<\/p>\n<p style=\"text-align: justify\">The series of partnership breakups began after Silvergate declared that it might not survive the turbulence since the extreme asset sale would deplete its capital. As a result, <strong>the bank has also been unable to pay off loans that are coming due.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesses in the digital asset sector are keeping their distance from Silvergate after the crypto-friendly bank postponed submitting its annual 10-K report to the Securities and Exchange Commission (SEC).<\/p>\n","protected":false},"author":26,"featured_media":134339,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[102,84,74],"tags":[5559,5090,4642,5383,5319,4844],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/134301"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/26"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=134301"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/134301\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/134339"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=134301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=134301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=134301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}