Crypto market takes a beating as Silvergate Bank’s future comes into question

by Ana Lopez

The collapse of Sam Bankman-Fried’s FTX is still another wound in the cryptocurrency market. There have been recent ones characters of a possible recovery, but the market suffered another setback when trading began in Hong Kong early Friday, when major crypto exchanges — including Coinbase, Crypto.com, and Gemini — announced they were closing their business with California-based Silvergate Bank. interrupt.

Silvergate announced this on Wednesday SEC filing that its annual report would be delayed as it is “currently analyzing certain regulatory and other investigations and ongoing investigations” related to the company. If CoinDesk noted, Silvergate implied regulatory scrutiny to get into another part of the filing, referring to “investigations of our banking regulators, congressional investigations, and investigations of the U.S. Department of Justice.”

On Thursday, responses to Silvergate’s filing came from Coinbase, Circle, Paxos, Crypto.com, Bitstamp, Cboe Digital Markets, Galaxy Digital and Gemini – the exchanges stated they were suspending business with the bank, including (ACH) wire transfers. So when trading began in East Asia on Friday, Bitcoin plummeted, though not as badly as Silvergate shares, which lost more than half of their value during Thursday’s trading in US markets. The cryptocurrency drop also affected all major cryptocurrencies except BTC and ETH.

Nick Ruck of Web3 studio ContentFI explained CoinDesk that “institutions are a bit nervous” about Silvergate potentially having “problems”.

As CoinDesk noted, the sell-off was extreme enough to cause periodic outages on Coinbase’s website.

Bitcoin was trading at around $22,400 early Friday in the US, down from a 24-hour high of $23,553, and Ethereum was trading at $1,570 after hitting a 24-hour high of $1,657.

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