Silvergate Bank Clients Experience Money Transfer Issues from Fedwire

Published at: March 23, 2020

A cryptocurrency-friendly firm is having problems receiving money transfers.

According to sources available to Cointelegraph, clients at Silvergate Bank have been experiencing issues with certain types of wire transfers since Friday. The firm has stated an outage by their payment processor, Fedwire, is responsible for the drop in service. 

CEO Alan Lane confirmed the bank has been having trouble processing payments from some clients, but stated this did not affect users who already had money with Silvergate.

"Our trading partners send us money on Friday so they have funds on the platform ready to transfer to OTC desks over the weekend in case there are opportunities over the weekend to trade, but for those folks with money on the platform, their accounts are working and are just fine."

At the moment, it appears that Silvergate will be processing orders manually through a backup processor. 

"While we are obviously extremely disappointed with our service provider, it is important for all existing Silvergate clients to know: Their funds are safe.”

Big-name crypto exchanges using Silvergate

A California-based commercial bank, Silvergate has been decidedly friendly to crypto traders. The firm started offering cryptocurrency-collateralized loans in August 2019.

In addition, there are some major exchanges on its client list since Silvergate brought on hundreds of digital currency-related clients in Q4 2018. United States-based exchanges Gemini and Kraken are now among them.

Bank dealing with coronavirus fallout

Like Coinbase and nearly every other major business in the United States at the moment, Silvergate has had to face certain restrictions to prevent the spread of the coronavirus. At the time of writing, over half the bank staff is working remotely.  

Silvergate Capital went public on the New York Stock Exchange on Nov. 7, and currently sells at $9.71.

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