- Many crypto exchanges have severed connections with Silvergate Bank.
- Users of Bybit may no longer make new deposits in US dollars.
Bybit, one of the leading cryptocurrency exchanges, said on Saturday that it has temporarily suspended bank transfers of US Dollars. The exchange blamed interruptions in service from its banking partner but did not specify which bank was at fault.
Since Silvergate voiced worries about liquidity challenges and difficulty for operations going ahead, this news has emerged at a time of tumult in the cryptocurrency market. Many crypto exchanges and related businesses have severed connections with Silvergate Bank.
Service Outage From Partners
Due to the situation with the partner, Bybit USD transactions were immediately suspended, the company stated in a statement. Yet in the near future, the Advcash Wallet will allow users to deposit US dollars. In light of the current predicament with their banking partner, this alternative approach represents Bybit’s best effort to find a way out. Users of Bybit may no longer make new deposits in US dollars, however, withdrawals will be possible until March 10, 2023.
The exchange stated:
“Bybit has suspended USD deposits via bank transfer due to service outages from our partner. Effective immediately, USD deposits via Wire Transfer (SWIFT) and Wire Transfer for US banks are no longer available.”
In light of the confusion surrounding Silvergate, Bybit is still determining which partner it has links with. Due to ‘prevailing circumstances’ with the banking partner, the exchange foresaw possible interruptions.
Even though there has been widespread fear, uncertainty, and doubt (FUD) in the crypto world over Silvergate, the exchange has made it clear that USD assets are secure. Coinbase announced the end of its relationship with Silvergate Bank as its US dollar banking partner on March 2, 2023, a Thursday. Immediately, Coinbase shifted its US dollar currency transactions to Signature Bank.
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