Binance, the biggest cryptocurrency exchange in the world, stated that it has no exposure to Silvergate Capital (NYSE:SI) to calm the fears of customers alarmed by the bank’s collapse on Wednesday.

Changpeng Zhao, the founder and CEO of Binance tweeted, “Binance does not have asset losses at Silvergate,” shortly after the cryptocurrency exchange announced it would cease operations.

Several significant cryptocurrency exchanges get traditional banking services from Silvergate. When Silvergate’s cryptocurrency clients withdrew their money from the bank to satisfy redemption requests from their own customers as a result of the widespread exodus from cryptocurrencies as an asset class following FTX’s collapse, it had already experienced catastrophic losses on its portfolio of bonds.

According to Cowen analysts, it will be challenging for the other cryptocurrency exchanges with US locations to take over Silvergate’s services. While small banks might be wary of the liquidity risk that brought down Silvergate, large institutions will probably avoid the regulatory risk.

The announcement of its decision to liquidate dealt a new blow to the price of cryptocurrencies, sending Bitcoin to a one-month low before it briefly recovered from being down 1.3% at $21,651 by 04:15 ET (09:15 GMT). In premarket trade, shares of businesses with a focus on cryptocurrencies, including Coinbase (NASDAQ:COIN), Riot Platforms (NASDAQ:RIOT), and MicroStrategy (NASDAQ:MSTR), all decreased.

However, customers kept withdrawing funds from Binance USD, the native coin utilised to settle most trade activity on the platform. After the collapse of FTX, its outstanding market capitalization has decreased by two-thirds, from over $12 billion to just over $8 billion.

Like many other businesses, Binance’s U.S. operations have previously banked with Silvergate. But over time, it seemed to have scaled back the intensity of their relationship. Reuters revealed last month that during the first three months of 2021, Binance.US transferred more than $400 million from Silvergate to other accounts. Binance’s offshore activities allegedly initiated the asset transfer, contrary to Zhao’s frequent statements that Binance.US operates independently of its unregulated affiliate. This accusation made the story noteworthy.

According to a message from Catherine Coley, the CEO of Binance.US at the time, published by Reuters, the transfers had occurred without her knowledge, were “unexpected,” and “no one mentioned them.”

Furthermore, it claimed that a 2021 Binance.US document described Silvergate as a payment channel owned at the time by Binance.com and that Binance finance executive Susan Li had access to the Binance.US Silvergate account, according to a source with knowledge of the situation.

Binance told Reuters the information was “outdated” but didn’t elaborate.