Kraken to suspend Plaid withdrawals and deposits via ACH Silvergate

May 26, 2023 | Helen Partz

The main cryptocurrency exchange, Kraken, has encountered difficulties in terms of withdrawals and deposits related to automatic clearinghouse (ACH) through Silvergate.

It is reported that Kraken has already informed its users that gradually from March 27, it will not be able to apply ACH deposits and withdrawals. According to several reported online reports from Kraken users, Kraken sent an email notice in its announcement on March 22.

In the announcement, Kraken specified that from March 27th, users will not see deposit options based on Played, or access options through ACH Silvergate. The company stressed: "all other services are not affected by this change, including timely purchase of ACH based on personal online banking."

Kraken recommends that users inquire about other available equity financing options to ensure a continuous sense of equity financing, including MVB Bank for Fedwire deposits and withdrawals, as well as other timely purchase options.

"our team has been trying to get the ACH equity fund to recover as soon as possible," Kraken said. "

Silvergate was one of the password-friendly American banks that went bankrupt in early March along with Silicon Valley Bank and other lenders. This kind of thing poses a huge test for the cryptocurrency industry, because many data encryption companies are very open to banks.

According to CoinGecko, at the time of writing, Kraken was one of the largest cryptocurrency exchanges in the world, with a daily turnover of more than $1 billion. In 2019, Kraken joined Silvergate Exchange Network, which allows the company to provide Silvergate accounts with US dollar deposits and withdrawals.

Kraken is not the only one forced to stop the login password exchange for ACH deposits and withdrawals based on Silvergate. On March 2nd, Gemini, an exchange founded by Winklevoss buddies, also stopped accepting customer deposits and settled withdrawals through Silvergate ACH and bank wire transfers.

Magazines and periodicalsUnstable currency: pegs, bank runs and other risks loom