by On March 22, the San Francisco-based crypto exchange Kraken witnessed withdrawal and deposit challenges. The Kraken team revealed that the technical challenges were rooted in the challenges battling its automated clearing house (ACH), which is linked to Silvergate Capital. The deposit and crypto withdrawal delays have prompted Kraken users to lodge numerous complaints. Following this, the Kraken team announced to the user that the firm would halt ACH-related deposits and withdrawals from March 27.
Impact of Collapse of Silvergate on Crypto Firms
The collapse of Silvergate has prompted the Kraken team to seek new banking partner to support electronic funds transfer features. According to the March 22 report, the Kraken technical team confirmed from March 27 that the platform’s deposit and withdrawal features will be disabled.
The report stated that Kraken would resume the operation of the halted features after finding a suitable banking partner. Meanwhile, Kraken users are urged to utilize alternative funding to complete their daily activities. The team has recommended that the user consider the services providers by the Virginia-based financial provider MVB Bank before resuming the ACH features.
Furthermore, the suspension of Kraken’s ACH features mirrors a recent move by Gemini following the collapse of Silvergate. Per the report, Silvergate has supported the Kraken deposit and withdrawal features since 2019. The Silvergate ACH feature has propelled Kraken to rank among the best crypto exchanges globally. At the time of writing, Kraken trading volume reached $1,165,238,184 in the last 24 hours.
