FalconX Stop Using Silvergate’s SEN Network

Out of an abundance of caution, the cryptocurrency trading platform FalconX will not route transfers through the cryptocurrency bank Silvergate.

FalconX recently informed users in a note that, as of right away:

“Out of an abundance of caution for our customers, we will not be using Silvergate SEN and wires, effective immediately and until further notice. This action is based on publicly available information on Silvergate and is consistent with other market players.”

The bank’s internal rails, known as SEN (Silvergate Exchange Network), let partners swiftly transfer and receive US dollars and euros at any time of day.

FTX, a defunct cryptocurrency exchange, was also Silvergate’s significant client. According to the bank, as of September 30, it still had $11.9 billion in crypto-related client deposits, of which FTX accounted for less than 10%.

That would imply that maybe more than $1 billion maintained with Silvergate is now inactive while bankruptcy procedures are ongoing. Still, since FTX experienced its own $6 billion bank run, which caused it to fail, markets have been closely monitoring Silvergate.

A rush of cash withdrawals from cryptocurrency exchanges or redemption of USDC through Circle could push Silvergate to its breaking point, according to speculators.

According to the email, FalconX would accept payment in USDC stablecoin.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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