Major cryptocurrency exchange Kraken is experiencing difficulties with the Automated Clearing House (ACH)-related deposit and withdrawal channel through Silvergate.
Kraken has reportedly notified its users that it will not be able to support ACH deposits and withdrawals starting March 27. According to various online reports from suspected Kraken users, Kraken sent out an email tip with the announcement on March 22.
In the statement, Kraken specified that users would no longer see a deposit option via Plaid or a withdrawal option via ACH Silvergate starting March 27. “No other services will be affected by this change, including ACH instant purchases through Online Banking,” the firm said. noted.
Kraken has advised users to look into other available funding options to ensure a seamless funding experience, including MVB Bank for Fedwire deposits and withdrawals, and other instant purchase options.
“Our team is working to make ACH funds available again as soon as possible,” Kraken stated.
KRAKEN “WILL NO LONGER SUPPORT ACH DEPOSITS AND WITHDRAWALS” STARTING MARCH 27.
DROWN DROWN DROWN pic.twitter.com/kKLpWi5oYi
— DIRTY BUBBLE MEDIA: BYE BYE (@MikeBurgersburg) March 22, 2023
Silvergate is one of the crypto-friendly American banks that collapsed in early March along with other lenders like Silicon Valley Bank. The events have posed great challenges for the cryptocurrency industry because many cryptocurrency companies have significant exposure to banks.
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Kraken is one of the largest cryptocurrency exchanges in the world at the time of writing, making over $1 billion a day. according to CoinGecko data. In 2019, Kraken joined the Silvergate Exchange Network, allowing the company to offer US dollar deposits and withdrawals from Silvergate accounts.
Kraken is not the only crypto exchange forced to stop its ACH deposits and withdrawals through Silvergate. On March 2, the Gemini exchange, founded by the Winklevoss brothers, also stopped accepting client deposits and processing withdrawals via Silvergate ACH and wire transfers.
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