Key Crypto Payments Network Unravels Months After FTX’s Fall (1)

Less than four months after the collapse of the FTX exchange, crypto companies are again finding themselves assessing exposure to an embattled partner and cutting ties preemptively to avoid contagion.

This time, the counterparty is Silvergate Capital Corp., the bank behind a widely used payments network that facilitates the real-time transfer of money between crypto firms.

Silvergate suffered from a run on deposits already last year, triggered by the bankruptcy of its key client FTX. On Wednesday, the bank said it sold more debt holdings at a loss and was reviewing whether it can remain viable. It also indicated …