Cryptocurrency exchange Bitstamp announced on Thursday that it is temporarily withdrawing Silvergate Exchange Network (SEN) services for all its users and all US dollar wire support via Silvergate Bank after Silvergate delayed the filing of its annual 10-K report with the United States Securities and Exchange Commission (SEC).
"In light of our actions, we'd like to inform you that client funds are secure, and Bitstamp has no material exposure to Silvergate Bank. We work with 17 Banking Partners globally and have implemented alternative banking services to ensure minimal disruption to our customers," Bitstamp said in a blog post. The exchange stressed that it can't ensure that new funds transferred to the Silvergate bank account will be credited to users' accounts on the Bitstamp platform and may be lost.
Earlier, Coinbase suspended all payments to and from Silvergate Bank. Silvergate shares plummeted 46.76% to $7.20 at 12:15 pm ET.
