Cryptocurrency Firms Deny Exposure to Troubled US Banks
Luisa Crawford Mar 15, 2023 08:50
Major cryptocurrency firms, including Tether, Crypto.com, Gemini, BitMEX, and others, have denied exposure to dissolved U.S. banks like Silicon Valley Bank and Signature Bank. The firms have taken to social media to assure their users that their funds are safe and accessible despite ongoing issues in the U.S. banking system.
In recent years, the cryptocurrency industry has seen significant growth, with new exchanges, wallets, and other services popping up almost daily. However, the industry has also faced numerous challenges, including regulatory scrutiny, hacking attacks, and volatile market conditions.
The ongoing banking crisis in the United States is the latest challenge facing the industry. Several major U.S. banks, including Silicon Valley Bank (SVB) and Signature Bank, have been dissolved due to financial difficulties, leaving customers and partners uncertain about the safety of their funds.
To address these concerns, major cryptocurrency firms have taken to social media to assure their users that they have no exposure to the troubled banks and that their funds are safe and accessible.
Tether, the operator of the largest stablecoin by market capitalization, with a market value of $73 billion, was one of the first companies to deny exposure to SVB and other troubled U.S. banks. Tether's chief technology officer, Paolo Ardoino, took to Twitter to announce that the stablecoin company has zero exposure to Signature Bank.
Similarly, Kris Marszalek, CEO of major cryptocurrency exchange Crypto.com, provided similar statements on the company being unaffected by the ongoing issues in U.S. banking.
Other major exchanges, including Gemini and BitMEX, have also denied any exposure to the dissolved U.S. banks.
Despite having a partnership with Signature, Winklevoss brothers-founded Gemini exchange has zero customer funds and zero Gemini dollar (GUSD) funds held at the bank, the firm announced on March 13.
BitMEX exchange also took to Twitter on March 13 to announce that the company had "no direct exposure" to Silvergate, SVB, or Signature, and that all user funds continue to be safe and accessible 24/7/365.
Exchanges like Binance and Kraken have partly denied exposure to the dissolved banks, with Binance CEO Changpeng Zhao stating that Binance does not have assets at Silvergate, and former Kraken CEO Jesse Powell also denying exposure to SVB.
Bitcoin mining firm Argo Blockchain issued a statement on March 13, declaring that the company has no direct or indirect exposure to SVB and Silvergate Bank. However, the company said that one of Argo's subsidiaries holds a "portion of its operating funds in cash deposits" at Signature, which the company stated were secure and not at risk.
A number of other firms, including Animoca Brands, Abra, and Alchemy Pay, have partly denied exposure to the troubled U.S. banks, stating that they had no assets at SBV and Silvergate.
Some companies, like crypto custodian BitGo, declared that it holds no assets at SVB while being "not impacted" by issues at Silvergate, USD Coin, and Signature Bank.
In conclusion, the ongoing banking crisis in the United States has raised concerns among customers and partners of dissolved U.S. banks. However, major cryptocurrency firms have taken proactive measures to address these concerns and assure their users that their funds are safe and accessible despite the ongoing issues in the U.S. banking system. The response from the industry demonstrates its resilience and commitment to providing reliable and secure financial services to its users.
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