Crypto-friendly Silvergate Bank has abruptly cut ties with crypto exchange operator Binance
According to an email from Binance, one in English and one in Spanish, it appears that Binance will no longer support USD deposits and withdrawals via Silvergate Bank over SWIFT as of June 11. Here’s the move. Binance’s latest news following rumors that Silvergate suddenly stopped working with one of the world’s largest exchanges.
Crypto-friendly Silvergate Bank has stopped providing services to Binance
Silvergate Bank is one of the few financial institutions serving cryptocurrency firms. It is considered one of the most cryptocurrency-friendly banks. But it’s not clear why they stopped processing U.S. dollar deposits and withdrawals for exchange giant Binance.
According to an email from Binance being circulated Thursday on Twitter and Reddit., starting Friday, USD deposits and withdrawals through La Jolla, Calif.-based Silvergate Bank will be discontinued.
The email states that Binance will no longer support USD deposits and withdrawals as of June 11:
“USD deposits made to our Silvergate Bank account after 11 June 2021 (UTC 23:59) will be returned to your account within 21 working days. The returned amount may be lower due to external bank fees involved.”
Even so, Binance still reassures users as follows:
“Rest assured, we are working hard to provide an alternative USD solution.”
Indeed, the bank also tweets that Binance.US is a customer in good standing and an active participant on the Silvergate Exchange Network, without mentioning the mothership.
— Silvergate Bank (@silvergatebank) June 10, 2021
Silvergate and Binance.US, the global exchange’s stateside affiliate, were unavailable for comment at press time. Another source said the U.S. division was unaffected.
Binance declined to comment on the post:
“We don’t have anything to add at this time.”
It is unclear what prompted Silvergate to end the service. Bloomberg recently reported that Binance was under investigation by the U.S. Department of Justice, Internal Revenue Service, and the Commodity Futures Trading Commission (CFTC). No wrongdoing has been alleged in any of these reported investigations.
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