Major cryptocurrency exchange Kraken is experiencing difficulty accessing withdrawals and deposits through Silvergate’s automated clearing house (ACH)-related gateway.
Kraken has reportedly informed its users that it will not be able to support ACH deposits and withdrawals starting March 27. Kraken sent an email notification and made the announcement on March 22, according to multiple online reports from purported Kraken users. In the statement, Kraken made it clear that starting March 27, users will no longer see a deposit option through Plaid or a withdrawal option through ACH Silvergate. "Other services will not be impacted by this change, including ACH instant purchases through online banking," the company famously said.
Kraken recommends users review other available funding options to ensure an uninterrupted funding experience, including MVB Bank for Fedwire deposits and withdrawals, and other instant purchase options. “Our team is working hard to make ACH funds available again as soon as possible,” Kraken said.
Silvergate, one of the crypto-friendly U.S. banks, collapsed in early March, along with others such as Silicon Valley Bank. These events pose a major challenge to the cryptocurrency industry, as many cryptocurrency companies have significant exposure to banks. At the time of writing, Kraken is one of the largest cryptocurrency exchanges in the world, with more than $1 billion in daily trading volume, according to CoinGecko. In 2019, Kraken joined the Silvergate Exchange Network, which enabled the company to offer U.S. dollar deposits and withdrawals from Silvergate accounts.Kraken wasn’t the only cryptocurrency exchange forced to halt its ACH deposits and withdrawals through Silvergate. Gemini, the exchange founded by the Winklevoss brothers, also stopped accepting customer deposits and processing withdrawals via Silvergate ACH and wire transfers on March 2.
