The cryptocurrency exchange Coinbase stated on March 2, 2023, that it is “no longer accepting or initiating payments to or from Silvergate Bank” in light of recent events. The announcement comes after the crypto bank postponed filing its annual 10-K with the Securities and Exchange Commission (SEC), and JPMorgan downgraded the stock of the business from “neutral” to “underweight.”
Recent Developments Prompt Coinbase To Cut Ties With Silvergate Bank, Experts Predict Extreme Market Fluctuations
On Thursday, Coinbase made the announcement that it will no longer be accepting payments to or from the crypto-friendly bank Silvergate. Silvergate postponed filing its 10-K with the SEC for the 2022 fiscal year, citing the need for extra time to finalize the filing. After the delay, JPMorgan downgraded the company’s stock rating from “neutral” to “underweight.”
On Thursday morning, Silvergate’s shares had lost 17.20% of their value over the previous five days before the opening bell on Wall Street. Coinbase announced that all client funds are still safe, accessible, and available, and they will no longer accept or initiate payments to or from Silvergate. The company shared this update via Twitter, stating that it was taking this step out of an abundance of caution in light of recent developments.
Coinbase emphasized that its funds are secure and safe while stating that it has very little corporate exposure to Silvergate.
The cryptocurrency derivatives platform Ledgerx reportedly alerted users that it is no longer collaborating with Silvergate, which coincides with the JPMorgan downgrading and Coinbase news on Silvergate. According to the claimed email that Ledgerx issued to its clients, wire transfers are now handled by Signature Bank.
Ledgerx used to be a component of the FTX business. However, it is currently one of the companies that are not associated with the FTX bankruptcy proceedings. Prior to the Coinbase announcement, CNBC noted that one of the most active stocks on Thursday’s trading day was anticipated to be Silvergate.