Gemini issues statement on JPMorgan cutting ties with crypto exchange

ambcrypto.com:

Gemini – a leading American-based crypto exchange – broke its silence on the ongoing reports of leading American banking institution – JPMorgan cutting ties with the crypto exchange. The crypto exchange claimed there was no change in its relationship status with the multi-national bank. Meanwhile, JPMorgan did not release a statement on the report as of press time.

The company’s statement on Twitter read,

“Despite reporting to the contrary, Gemini’s banking relationship remains intact with JPMorgan.”

The crypto exchange first forged an alliance with JPMorgan in May 2020 alongside another popular American crypto exchange – Coinbase. And, it was the first time America’s largest bank extended banking service to crypto firms. According to a report by Wall Street Journal, JPMorgan had agreed to provide cash management services and manage dollar-based transactions. This service was extended to only United States-based customers.

Notably, the report emerged right when Silvergate Bank – a crypto-focused financial service provider – is showing signs of distress. This resulted in several crypto-firms, including Gemini distancing from the bank. The crypto exchange had stated that it has stopped accepting deposits and processing withdrawals via Silvergate.

The crypto-centric bank has been facing a bank run since the collapse of the once-popular crypto exchange – FTX. And, matters turned dire for Silvergate after it announced it would delay the release of its annual report in an SEC filing. Moreover, the filing raised doubts about survival as a going concern, resulting in its share price taking a diving in the market.

Moreover, given the recent collapses and bank run, the US federal regulators issued a warning to banks on crypto-related