Kraken, a major cryptocurrency exchange, has informed its users that it will no longer be able to support automated clearing house (ACH) deposits and withdrawals via Silvergate starting March 27. In a statement, Kraken advised its users to look into other available funding options, such as MVB Bank for Fedwire deposits and withdrawals, and other instant purchase options to ensure uninterrupted funding experience. While the move is expected to be a temporary one, the crypto exchange has not given any reason for the suspension. Kraken, which joined the Silvergate Exchange Network in 2019, has assured its users that no other services will be affected by the change.
Kraken’s decision comes amidst the challenges posed by the collapse of several crypto-friendly banks, including Silvergate, in early March. These events have created significant exposure to the cryptocurrency industry since many crypto firms hold substantial exposure to these banks. Gemini, a cryptocurrency exchange founded by the Winklevoss brothers, also stopped accepting customer deposits and processing withdrawals through Silvergate ACH and wire transfers on March 2.
Kraken, which is one of the world’s largest cryptocurrency exchanges, trading more than $1 billion daily, according to data from CoinGecko, has been working to make ACH funding available again as soon as possible. However, the suspension of ACH deposits and withdrawals via Silvergate could impact the exchange’s users, who would need to find alternative funding options.