March 2, 2024

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Crypto-friendly Silvergate shuts down SEN platform institutions used to move funds to exchanges

Crypto-friendly Silvergate shuts down SEN platform institutions used to move funds to exchanges

Silvergate Bank, which this week warned it could continue to operate, has suspended its SEN platform, which institutions use to move funds to cryptocurrency exchanges.

“Silvergate Bank immediately made an effective, risk-based decision to discontinue the Silvergate Exchange Network (SEN),” the company said on its website on Friday. All other deposit-related services remain operational.

A spokesperson for the bank sent out a similar message to companies in the crypto sector.

“Unfortunately, we don’t have additional information to share at this time,” the spokesperson said.

SEN is a 24/7 instant settlement service that bank customers can use to transact between each other at any time, including nights and weekends. The bank counted a number of major crypto companies as clients of the service, including Binance US, Kraken, Gemini, and ErisX (before Cboe’s acquisition of the latter).

Silvergate has had a tough week, after it revealed on Wednesday that it will delay filing its annual report due to questions from its auditors. In the same notice, the bank admitted it was facing investigations from banking regulators and the US Department of Justice, and said its ability to be an “ongoing concern” over the next year may be in doubt.

A number of the bank’s high-profile crypto clients were released the next day, and its share price fell nearly 60% before leveling off somewhat on Friday.

Update (March 3, 2023, 23:50 UTC): Adds additional information.

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