OKCoin pauses dollar deposits, OTC services after 'managing' Silvergate situation

Quick Take

  • OKX’s U.S.-based sister exchange, OKCoin, is pausing dollar deposits and over-the-counter services.
  • It claims to have had no exposure to Silvergate Bank, and that it “managed” the situation.

OKCoin, a U.S.-based crypto exchange affiliated with the much larger OKX, temporarily paused deposits of U.S. dollars following Sunday's failure of Signature Bank. 

OKCoin CEO and OKX President Hong Fang — who commonly goes by Hong — announced the news on Twitter, saying Signature was OKCoin's primary U.S. dollar bank. It also paused over-the-counter services, such as quick and recurring buys.

U.S. authorities seized Signature yesterday to protect depositors, following last week's demise of Silvergate Bank. Both were key providers of banking services to the crypto industry. 

Hong tweeted that OKCoin had no exposure to the Silvergate — the second-largest bank collapse in U.S. history — but said "we managed [the] Silvergate situation."

"Our team are working very hard on alternative channels and solutions in real time," Hong said, adding: "We've been through much worse times since our inception."

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.