1. PixelPlaygroundHome
  2. Web3 News

Gemini Suspends Deposits and Withdrawals through ACH amid Monitoring of Silvergate Bank

• Web3 News • 115 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 dep…

Gemini Suspends Deposits and Withdrawals through ACH amid Monitoring of Silvergate Bank

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

Interpretation of the news:


Gemini, a popular cryptocurrency exchange, announced on Twitter that it was keeping a close eye on Silvergate Bank’s situation amidst the recent events surrounding the banking institution but denied depositing any GUSD or customer funds in the bank. This announcement comes in the wake of concerns from other financial institutions who have expressed their unease about Silvergate’s prospects regarding cybersecurity and potential fraud activities.

Gemini’s move can be construed as a way of safeguarding its customers’ funds, as Silvergate Bank has been at the center of several controversies over the past few months. This statement also highlights the implication for other cryptocurrency exchanges and financial institutions that have partnered with the bank regarding safety and security.

Moreover, Gemini suspended customer deposits and withdrawals through ACH, the automated clearing house system used by banks for electronic funds transfers, and also halted its capital exchange service with Silvergate Bank. The suspension of ACH services is indicative of the ongoing issue with cybersecurity and fraud perpetration by hackers, making banks and cryptocurrency exchanges wary.

The suspension of withdrawals and deposit through ACH may adversely affect the company’s customer base as it limits their flexibility to transfer funds to other bank accounts. However, it appears that Gemini’s decision focused on protecting their users’ capital against a potential loss due to fraudulent activities. Furthermore, Gemini showed their responsibility through this move, indicating that the company values their clients’ safety and security over its operational convenience.

Overall, Gemini’s announcement highlights the importance of banking institution partnerships in the world of cryptocurrency trading. It demonstrates that other exchanges and financial institutions must take account of their choices when partnering with banks which have a troubled history. Although Gemini’s announcement was a preemptive measure, it is an essential decision which will ultimately benefit its customers- providing for safety and security regarding their funds.

In conclusion, this interpretation illustrates the significance of cryptocurrency exchanges to closely monitor banking institutions they are engaged with- especially those with credibility issues. Through proactive measures, exchanges like Gemini can safeguard their customers’ funds and protect them from potential losses.

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/4671/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 03/03/2023 23:49
Next 03/03/2023 23:53

Recommended articles