Following a week-long halt of collaboration, FalconX, a cryptocurrency prime broker, resumed their Silvergate payment network service.
A FalconX representative remarked that the company has updated its instructions for clients’ cash transfers, and postponed settlements to and from its Silvergate account due to the increased risk environment and Silvergate’s wire payment network outage (Finastra outage update).
“This aligns with our standard process to pause and reassess operations in these scenarios. We completed this process and are reopening settlement to/from our Silvergate account,” said the spokesperson.
FalconX informed the userbase on November 18 that it had ceased using Silvergate Exchange Network (SEN) in light of the crypto market turndown, citing the need for “an abundance of caution.”
Earlier in the month, the firm reported exposure to the defunct cryptocurrency exchange FTX in the form of deposits. Alan Lane, CEO of Silvergate, explained that the firm has “no outstanding loans to, nor investments, in FTX, and FTX is not a custodian for Silvergate’s bitcoin-collateralized SEN Leverage loans.”
SEN, a major factor in the bank’s expansion, lets its customers make payments in dollars and euros whenever they want.
