The SEN network, one of the bank’s most popular offerings, provided round-the-clock transfers between investors and crypto exchanges, as opposed to traditional bank transfers, which could take several days to settle.
“After assessing the risks, Silvergate has made the decision to discontinue SEN. The decision takes effect immediately. All other deposit-related services remain available,” Silvergate said.
After Silvergate reported uncertainty about the viability of its business, many cryptocurrency exchanges and companies such as Coinbase, Paxos, Circle and Gemini began to pull back from the bank.
Earlier in December, a lawsuit was filed against Silvergate and its CEO Alan Lane. The plaintiffs insist that the bank directly contributed to the fraudulent activities of the FTX exchange. Clients used the organization to launder money, while the bank’s management deliberately misrepresented business transactions.
Let’s remind that in February Moody’s rating agency downgraded the company’s rating to B3 level, which means a high degree of the issuer’s credit risk.
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