On April 19, United States District Judge Jacqueline Scott Corley of the Northern District of California ruled that the three lawsuits would be consolidated. Each accuses Silvergate of helping to facilitate investor fraud by the collapsed crypto exchange FTX.
The banking sector is becoming increasingly wary of the cryptocurrency industry, following the closure of accounts by Silvergate Bank and Signature Bank for crypto-related businesses. The closures have raised concerns about the potential risks and challenges associated with providing banking services to the cryptocurrency industry.
“As of March 27, 2023, Kraken clients will no longer be able to use ACH deposits and withdrawals through Silvergate,” the company told CoinDesk in an email. “We are working to make ACH funding options available through alternative funding providers as soon as possible and will communicate details with clients as soon as we can.”
As per the latest CNBC report, most of these crypto firms have turned to crypto-friendly Swiss banks while flooding them with requests for banking services. Although digital assets have shown strength amid the banking crisis, the fact remains that crypto firms still need banking partners as a source of liquidity.