Gemini Exchange Suspends ACH Transactions Amid Silvergate Bank Monitoring

03/03/2023 23:50 • AI Insights • 85 views

According to reports, Gemini, the cryptocurrency exchange, said on Twitter that it was actively monitoring the situation of Silvergate Bank, but it did not deposit any GUSD and customer funds in the bank. In addition, the exchange has stopped customer deposits/withdrawals through ACH, and the capital exchange service initiated by Silvergate Bank to Gemini has also been suspended.

Gemini: There is no deposit of GUSD and customer funds on Silvergate

Analysis based on this information:

Gemini, one of the leading cryptocurrency exchanges, has announced that it is closely monitoring the ongoing situation of the Silvergate Bank but has not deposited any GUSD (Gemini Dollar) or customer funds in the bank. The announcement was made through Twitter and came as a response to some of the concerns raised by the customers.

In addition, the exchange has also suspended customer deposits and withdrawals through ACH, a popular electronic funds transfer system in the US. According to the statement released by Gemini, this was done to ensure the safety and security of the customers’ funds. The capital exchange service initiated by Silvergate Bank to Gemini has also been suspended.

The move by Gemini comes after Silvergate Bank disclosed that it had entered into a letter of engagement with the US Securities and Exchange Commission (SEC). The letter stipulates that Silvergate Bank will not enter into any agreement with any Stablecoin issuer or exchange unless it has been registered with the SEC. It is unclear whether Gemini’s decision is directly related to this letter, but it is likely that the exchange is taking precautions in case of any potential regulatory actions.

Gemini is a regulated cryptocurrency exchange and is licensed by the New York State Department of Financial Services (NYDFS). The exchange has always been proactive in implementing strict security measures and policies to safeguard the interests of its customers. Keeping in mind the current situation of Silvergate Bank, the exchange has decided to take such measures to ensure the safety of its customer’s funds.

In conclusion, the decision by Gemini to suspend ACH transactions and not deposit any funds in Silvergate Bank’s account indicates the exchange’s proactive approach towards safeguarding its customers’ interests. While it is uncertain whether the move is directly associated with the letter of engagement between Silvergate Bank and the SEC, Gemini’s actions show that they take any potential regulatory actions seriously.

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Gemini Exchange Suspends ACH Transactions Amid Silvergate Bank Monitoring

Gemini: There is no deposit of GUSD and customer funds on Silvergate

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