Silvergate Bank Allegedly Breaks Off Partnership With Crypto Exchange Binance

Silvergate Capital Corp SI, a crypto-focused bank, has suddenly ended its partnership with a leading crypto exchange Binance, according to a report from The Block.

What Happened: Binance reportedly sent an email to customers on Wednesday, informing them that it will no longer support U.S. dollar deposits and withdrawals via Silvergate Bank over SWIFT beginning June 11.

"USD deposits made to our Silvergate Bank account after 11 June 2021 (UTC 23:59) will be returned to your account within 21 working days," stated the email.

"The returned amount may be lower due to external bank fees involved. Rest assured, we are working hard to provide an alternative USD solution.”

Why It Matters: Some users of the crypto exchange have been adversely impacted by the suspension of withdrawals, having their funds stuck for over two weeks.

"I just have a pending withdrawal in USD through Silvergate, and it is delayed. But surely it will not arrive there. We do not know how Binance will now return that withdrawal," Renzo Morales Díaz, a Binance customer from Columbia, reportedly told The Block.

In fact, multiple posts began to appear on Reddit from distressed users regarding the inability to withdraw funds transferred using (SWIFT) Silvergate Bank over the past few weeks.

Read also: If You Invested $1,000 In Binance Coin One Year Ago, Here's How Much You'd Have Now

However, users of Binance.US, the branch of the crypto exchange that caters exclusively to US-based customers and residents, are unlikely to be impacted by the developments.

In a Twitter post on Thursday, the exchange confirmed that Silvergate Bank remained a banking partner of the U.S.