{"id":22428,"date":"2023-03-04T16:05:24","date_gmt":"2023-03-05T00:05:24","guid":{"rendered":"https:\/\/coinnetworknews.com\/silvergate-bank-terminates-crypto-payments-network-as-shares-plunge-to-record-low-featured-bitcoin-news\/"},"modified":"2023-03-04T16:05:24","modified_gmt":"2023-03-05T00:05:24","slug":"silvergate-bank-terminates-crypto-payments-network-as-shares-plunge-to-record-low-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/silvergate-bank-terminates-crypto-payments-network-as-shares-plunge-to-record-low-featured-bitcoin-news\/","title":{"rendered":"Silvergate Bank Terminates Crypto Payments Network as Shares Plunge to Record Low \u2013 Featured Bitcoin News"},"content":{"rendered":"
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\n\"Silvergate\n<\/div>\n

Silvergate Bank has discontinued its cryptocurrency payments network. The decision to shut down Silvergate Exchange Network followed the withdrawal of banking relationships by several major cryptocurrency firms, including Coinbase, Gemini, Paxos, and Circle.<\/strong><\/p>\n

Silvergate Discontinues Crypto Payments Network<\/h2>\n

Silvergate Bank announced Friday that its cryptocurrency payments network, the Silvergate Exchange Network (SEN), has been terminated. According to a notice posted on the crypto-focused bank\u2019s website:<\/p>\n

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Effective immediately Silvergate Bank has made a risk-based decision to discontinue the Silvergate Exchange Network (SEN). All other deposit-related services remain operational.<\/p>\n<\/blockquote>\n

SEN is Silvergate\u2019s proprietary network that allows the bank\u2019s institutional investor and digital currency clients to transfer U.S. dollars between their Silvergate accounts and the accounts of other Silvergate clients 24 hours a day, seven days a week.<\/p>\n

Concerns mounted over Silvergate\u2019s financial stability and future prospects following the collapse of crypto exchange FTX. The bank claimed that as of Sept. 20, 2022, FTX represented less than 10% of its $11.9 billion total deposits from all digital asset customers. Nonetheless, the bank is reportedly being investigated<\/a> by the U.S. Department of Justice (DOJ) over accounts tied to the disgraced FTX co-founder Sam Bankman-Fried (SBF).<\/p>\n

On Wednesday, Silvergate informed the SEC that it is unable to file its annual report with the regulator for the fiscal year ended Dec. 31 \u201cwithin the prescribed time period without unreasonable effort or expense due to the reasons described below.\u201d The crypto-focused bank also revealed that it has sold additional debt securities at a loss this year, leading to questions about the company\u2019s ability to operate as a going concern. The filing further states that the bank\u2019s continued losses could result in it being \u201cless than well capitalized.\u201d Silvergate added:<\/p>\n

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The company is currently in the process of reevaluating its businesses and strategies in light of the business and regulatory challenges it currently faces.<\/p>\n<\/blockquote>\n

After Silvergate raised concerns about its business, crypto-focused firms including Coinbase Global, Galaxy Digital, Paxos, Circle, Cboe\u2019s digital asset exchange, Bitstamp, and Gemini suspended<\/a> their banking partnership with Silvergate.<\/p>\n

Shares of Silvergate (NYSE: SI) hit a new all-time low on Thursday, plummeting over 97% from their peak in November 2021. Last month, Silvergate became the most shorted stock<\/a> in the U.S. The bank incurred<\/a> a loss of $1 billion in the fourth quarter of last year.<\/p>\n

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SEN<\/a>, Silvergate<\/a>, Silvergate Bank<\/a>, Silvergate Coinbase<\/a>, Silvergate crypto partnerships<\/a>, Silvergate crypto payments network<\/a>, Silvergate cryptocurrency payments network<\/a>, Silvergate financial corp<\/a>, Silvergate Galaxy Digital<\/a>, Silvergate SEC<\/a>, Silvergate terminates SEN<\/a><\/div>\n<\/div>\n

What do you think about Silvergate shutting down its crypto payments network? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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