Joining the Silvergate Exchange Network in 2019, Kraken is now looking for new ACH funding options.
Major cryptocurrency exchange Kraken is experiencing difficulties with the withdrawal and deposit channel related to the automated clearing house (ACH) via Silvergate.
Kraken has reportedly notified its users that it will be unable to support ACH deposits and withdrawals starting from March 27. According to multiple online reports by alleged Kraken users, Kraken sent an email notice 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 beginning March 27. “No other services will be affected by this change, including ACH instant purchases via Online Banking,” the firm noted.
Kraken has advised users to look at the other available funding options to ensure an uninterrupted funding experience, including MVB Bank for Fedwire deposits and withdrawals, and other instant purchase options.
“Our team is working to make ACH funding available again as soon as possible,” Kraken stated.
KRAKEN WILL “NO LONGER SUPPORT ACH DEPOSIT AND WITHDRAWALS” STARTING MARCH 27TH.
— DIRTY BUBBLE MEDIA: BYE BYE BYE (@MikeBurgersburg) March 22, 2023
CHOKE CHOKE CHOKE pic.twitter.com/kKLpWi5oYi
Silvergate is one of the crypto-friendly U.S. banks that collapsed in early March alongside other lenders like Silicon Valley Bank. The events have posed major challenges for the cryptocurrency industry because many crypto firms hold significant exposure to the banks.
Related: FDIC sells Signature Bank deposits to Flagstar, crypto not included
Kraken is one of the world’s largest cryptocurrency exchanges at the time of writing, trading more than $1 billion daily, according to data from CoinGecko. In 2019, Kraken joined the Silvergate Exchange Network, which allowed the firm to offer deposits and withdrawals in U.S. dollars from Silvergate accounts.
Kraken is not the only crypto exchange forced to halt its ACH deposits and withdrawals via Silvergate. On March 2, Winklevoss brothers-founded exchange Gemini also stopped accepting customer deposits and processing withdrawals through Silvergate ACH and wire transfers.
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