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Coinbase, Galaxy, Paxos stop accepting transfers via Silvergate Network

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This time, the counterparty is Silvergate Capital Corp., the bank behind a widely used payments network that facilitates the real-time transfer of money between crypto firms.

Silvergate suffered from a run on deposits already last year, triggered by the bankruptcy of its key client FTX. On Wednesday, the bank said it sold more debt holdings at a loss and was reviewing whether it can remain viable.

It also indicated it was being investigated by the US Justice Department. That warning prompted swift reactions by crypto exchanges, stablecoin issuers and trading desks.

Coinbase Global Inc., Galaxy Digital and Paxos Trust Co. announced that they will no longer accept or initiate payments through Silvergate, as did Gemini Trust Co., and Cboe Clear Digital LLC.

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