Major US cryptocurrency exchange Kraken is experiencing issues with its withdrawal and deposit channel related to its automated clearing house (ACH) through Silvergate.
It creaks at Kraken
Kraken has reportedly informed its users that it will not be able to support ACH deposits and withdrawals as of March 27. According to multiple online reports from alleged Kraken users, Kraken sent out an email on March 22 with the announcement.
The statement specified that as of March 27, users would no longer see a deposit option through Plaid or a withdrawal option through ACH Silvergate.
Kraken has advised users to look at the other funding options available to ensure an uninterrupted funding experience. The MVB Bank for Fedwire deposits, withdrawals and other direct purchase options was named. Kraken reported the following:
Our team is working to make ACH funding available again as soon as possible.
Kraken joined Silvergate Exchange Network in 2019
Silvergate, in turn, is one of the crypto-friendly US banks that collapsed in early March along with other lenders such as Silicon Valley Bank. The events have presented great challenges to the cryptocurrency industry. Many crypto companies have significant exposure to the banks.
Kraken is currently one of the world’s largest cryptocurrency exchanges, trading more than $1 billion daily, according to data from CoinGecko. In 2019, Kraken joined the Silvergate Exchange Network. This allowed the company to offer US dollar deposits and withdrawals from Silvergate accounts.
Kraken is not the only crypto exchange forced to halt its ACH deposits and withdrawals through Silvergate. On March 2, exchange Gemini, founded by the Winklevos brothers, also stopped accepting customer deposits and processing withdrawals via Silvergate ACH and wire transfers. It is not known exactly until when this will last.
