A crypto-friendly bank’s stock price is free-falling as the top US-based crypto exchange platform by volume cuts off its payments.
In a new announcement, crypto exchange giant Coinbase says it is no longer going to be accepting or initiating payments to or from Silvergate, which has seen its stock price dip by over 45% over the last 24 hours.
“In light of recent developments and out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate…
Coinbase has de minimis corporate exposure to Silvergate.”
Silvergate’s stock is trading for $6.87 at time of writing, a staggering 49.6% drop from its price of $13.53 just one day ago.
Similarly, another prominent crypto firm is cutting off Silvergate for related reasons. According to stablecoin issuer Paxos, all transfers to Silvergate accounts have been discontinued.
“In light of recent developments with Silvergate Bank, Paxos has discontinued all SEN [Silvergate Exchange Network] transfers and wires to our Silvergate account. Paxos will continue to process all outgoing payments.”
Recently, SIlvergate declared to the U.S. Securities and Exchange Commission (SEC) that it would be delaying filing its annual financial report. The company’s report from last year indicates that it lost $1 billion in Q4 of 2022 due to the ongoing crypto winter.
The crypto-friendly bank was hit particularly hard by the collapse of the prominent crypto exchange platform FTX last year. Previously, it was reported that the downfall of the FTX ecosystem caused $8 billion worth of funds to be withdrawn from Silvergate.
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