Silvergate Bank abruptly breaks the connection to Binance and deactivates USD deposits and withdrawals

The crypto-friendly Silvergate Bank has abruptly cut ties with the crypto exchange operator Binance.

Binance sent an email to customers on Wednesday with two separate copies – one in English and one in Spanish. The email states that as of June 11, Binance will no longer support deposits and withdrawals in USD via Silvergate Bank via SWIFT.

“USD deposits made to our Silvergate bank account after June 11, 2021 (23:59 UTC, approximately 7:00 am local time) will be returned to your account within 21 business days. The amount returned may be lower due to external bank charges. “

“Rest assured, we are working on offering an alternative in USD.”

Caught in the balance

Renzo Morales Díaz, a Binance customer from Colombia who received a Spanish copy of the email, said his money was stuck for “two weeks”.

“I just had a pending withdrawal in USD through Silvergate and it was delayed. But it sure won’t end up in the right place. I don’t know how Binance will return this deposit now, ”said Díaz.

Silvergate-related issues for Binance users seem to have existed for at least a few months. In late March, a user did on Reddit Post that they had problems with Silvergate Bank deposits on Binance.

“About three weeks ago I gave $ 30,000 to Binance Company Key Vision Development Ltd. with Silvergate Bank (SWIFT). transferred. As of today, this amount will not be credited to my Binance account. The money was not returned to my bank account. “

Another user posted a notification The same thing on Reddit about two weeks ago.

Binance introduced the Silvergate financing option for international users last December. (The exchange claims to be blocking US users). The option allows users to deposit and withdraw USD to their Binance account to buy and sell crypto on Binance using a local bank account.

While Binance is looking for a USD alternative, international users of the exchange have other bank transfer options in other fiat currencies, including euros, pounds and dollars. Other local payment methods, debit and credit cards, and peer-to-peer methods are also available, according to the email. It is still unclear why Silvergate Bank ended its partnership with Binance.

After the news came out, Binance.US Post on Twitter that “we are proud to announce our partnership with [Silvergate] as one of our banking partners. “

Annie

According to The Block

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page