April 1, 2023

Silvergate Capital Corporation Closes Crypto Payment Service

Silvergate Capital Corporation, a popular banking institution for cryptocurrency businesses, has announced the closure of its crypto payment service, the Silvergate Exchange Network (SEN). The decision was made due to risk-based reasons, according to the firm’s statement.

The SEN service allowed investors to complete 24/7 transfers to crypto exchanges, which was one of the most utilized products of the bank. It operated a lot faster than traditional banking wire transfers that could take days. However, the bank raised eyebrows earlier this week when it revealed operational issues and said it had to delay its annual report.

The closure of the SEN service has caused concern among cryptocurrency investors who relied on the fast and efficient service. The bank’s shares have also plunged by a significant amount following the announcement.

Silvergate Capital Corporation was once a preferred banking institution for cryptocurrency businesses, but the entity has faced numerous issues in the past few weeks. The closure of the SEN service is the latest in a series of setbacks for the bank. It remains to be seen how this will affect the bank’s reputation and future business dealings with the cryptocurrency industry.

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