Kraken halts Plaid ACH withdrawals, deposits

Kraken is not the only cryptocurrency exchange that has to stop using Silvergate for ACH payments and withdrawals.

Kraken halts Plaid ACH withdrawals, deposits

Leading cryptocurrency exchange Kraken is having issues with the automated clearing house (ACH) withdrawal and deposit channel through Silvergate.

Kraken informed its users on March 27 that it would no longer accept ACH payments and withdrawals.  According to various internet accounts from purported Kraken users, the message was sent by email on March 22.

From March 27, Kraken will no longer provide deposit and withdrawal options through Plaid and ACH Silvergate, according to a statement. “No other services, including ACH quick transactions through Online Banking, will be impacted by this change,” the company added.

Kraken has urged customers to consider alternative accessible financing solutions, such as MVB Bank for Fedwire deposits and withdrawals and other immediate buy options, to guarantee a seamless funding experience.

Kraken added, “Our staff is striving to make ACH money accessible again as quickly as possible.”

Silvergate is one of the crypto-friendly U.S. banks that failed with Silicon Valley Bank at the beginning of March. The developments have presented significant obstacles for the cryptocurrency business since many crypto companies have substantial exposure to banks.

At the time of this writing, Kraken is one of the world’s major cryptocurrency exchanges, exchanging more than $1 billion every day. In 2019, Kraken joined the Silvergate Exchange Network, enabling the company to accept U.S. dollar deposits and withdrawals from Silvergate accounts.

Kraken is not the only cryptocurrency exchange that has been compelled to cease ACH payments and withdrawals using Silvergate.

Gemini, a cryptocurrency exchange created by the Winklevoss brothers, ceased taking client deposits and processing withdrawals through Silvergate ACH and wire transfers on March 2.