Kraken Cuts Ties with Signature Bank Amid Crypto Industry Contagion

Kraken, a cryptocurrency exchange, is severing ties with Signature Bank due to the bank’s decision to stop processing transactions worth less than $100,000. This follows the bankruptcy of FTX in December, which sparked a domino effect of contagion across the crypto sector. Silvergate Bank, which had ties to FTX and Alameda Research, experienced a bank run and is now being investigated by US regulators. As a result, numerous crypto companies have cut ties with Silvergate, including Paxos, Galaxy Digital, Gemini, BitStamp, Circle, Coinbase, and LedgerX, who have all replaced Silvergate with Signature Bank. Kraken customers will no longer be able to deposit or withdraw dollars from the exchange through Signature after March 15, and must withdraw all funds by March 31.