Bybit, the world’s fourth largest crypto exchange by volume, suspended U.S. dollar deposits and withdrawals via wire and bank transfers due to “service outages from a partner,” the company said Saturday in a blog post, without naming the partner.
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Fast facts
- The exchange said it will halt USD withdrawals via bank transfer from March 10 for the same reason, while adding that users can still purchase cryptocurrencies using credit cards.
- Bybit did not reveal the name of the partner that caused the service outage, but the suspension follows California-based crypto bank Silvergate Capital Corp.’s announcement last Friday that it is shutting down the Silvergate Exchange Network, an instant settlement banking service that was used by multiple crypto firms.
- Bybit had not responded to Forkast’s email request for the name of the partner involved by the time of publication.
- Last week, Silvergate said in a filing that it is not able to meet the March 16 deadline to file its annual 10-K report, which shows the financial performance of a publicly traded company, to the U.S. Securities and Exchange Commission, due to business and regulatory challenges.
- Silvergate said on Thursday it was evaluating “its ability to continue as a going concern,” which resulted in multiple cryptocurrency service providers, such as Crypto.com, Coinbase, Gemini and others, cutting ties with the embattled bank.
- Silvergate previously provided banking services to Sam Bankman-Fried’s now-bankrupt FTX exchange. The company posted a net loss of US$949 million last year according to its earnings report released in January.
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