Coinbase Severs Ties to Silvergate Bank Amid JPMorgan Downgrade and Delayed SEC Filing –
On March 2, 2023, cryptocurrency exchange Coinbase announced that the company “is no longer accepting or initiating payments to or from Silvergate Bank” in light of recent developments. The news follows the delay in the crypto bank’s annual 10K filing with the SEC and JPMorgan’s downgrade of shares in the company from “neutral” to “underweight.”
Coinbase is divesting itself of Silvergate Bank, the company’s shares are expected to be very volatile after recent developments
Coinbase announced on Thursday that it is no longer accepting or initiating payments to or from crypto-friendly bank Silvergate. Recently, Silvergate delayed its fiscal 2022 10-K filing with the SEC due to the need for more time to complete the filing. Following the delay, financial institution JPMorgan downgraded the company’s stock to underweight from neutral.
Before Wall Street’s opening bell on Thursday morning, shares of Silvergate were down 17.20% over the past five days. At 8:23 a.m. Eastern Time, Coinbase made its announcement. “At Coinbase, all customer funds remain safe, accessible and available,” the company said tweeted. “In light of recent developments, and as a precautionary measure, Coinbase is no longer accepting or initiating payments to or from Silvergate.”
The company further advises that funds held at Coinbase are safe added:
Coinbase has a small corporate exposure to Silvergate.
JPMorgan’s downgrade and Coinbase’s announcement regarding Silvergate intervene reports that crypto derivatives platform Ledgerx has informed customers that it is no longer working with Silvergate. The alleged email from Ledgerx to customers states that transfers are now processed through Signature Bank.
Although Ledgerx was once part of the FTX company, today it is one of the subsidiaries not involved in the FTX bankruptcy proceedings. Hours before Coinbase’s announcement, CNBC reported that Silvergate stock is expected to be one of the most active during Thursday’s trading session.
What impact do you think the recent developments surrounding Silvergate Bank will have on the cryptocurrency market as a whole? Do share your thoughts on this topic in the comments section below.
photo credit: Shutterstock, Pixabay, WikiCommons
(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));
Source: Crypto News Deutsch
