Coinbase Global Inc. announced on Thursday that all payments with California-based Silvergate Bank, will be suspended in the light of recent developments.
"Coinbase is no longer accepting or initiating payments to or from Silvergate," the American cryptocurrency exchange platform said in a tweet. "Coinbase will be facilitating institutional client cash transactions with our other banking partners and have taken proactive action to help ensure that clients experience no impact from this change," the company added.
The day before, the parent company of the crypto lending bank, Silvergate Capital Corporation, requested two-week extension from the Securities and Exchange Commission (SEC) after delaying the submission of its annual report for the 10-K report for the 2022 fiscal year. According to the company's SEC filing, it sold more securities this year to pay off debts and expects further losses, which might mean that the Bank and the Corporation are both "less than well-capitalized."
