Kraken Halts ACH Deposits and Withdrawals Following Silvergate Bank Bankruptcy

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Cryptocurrency exchange Kraken announced thatis experiencing difficulties with the deposit and withdrawal channel associated with the automated clearing house (ACH) and serviced through the failing Silvergate Bank.

Cryptocurrency exchange Kraken announced the suspension of operations due to the fact that it still could not choose a new banking partner.

“From March 27, Kraken customers will not be able to depositdeposits through Plaid and withdraw funds through the ACH channel hosted by Silvergate. We are working to bring new ACH service options to users through alternative financial service providers as soon as possible,” a Kraken spokesperson told reporters.

The Kraken team clarified that the temporarythe restriction of operations will not affect other services of the exchange. The marketplace encouraged users to review other transaction options available, including the MVB Bank channel for deposits and withdrawals through Fedwire services.

This is not the only case of breaking partnerships.relations between cryptocurrency exchanges and financial institutions. Previously, such restrictions were introduced by the cryptocurrency exchange Coinbase in relation to its clearing partner Signature Bank. The exchange has stopped
settlement support through Signet's digital payment platform, owned by Signature, following its forced closure by US financial regulators.