Metropolitan Bank Holding Corp, which is used by cryptocurrency companies and investment firms for wire transfers and deposits, has ceased all cryptocurrency-related international wires effective immediately, Fortune has learned. A Metropolitan customer confirmed to Fortune that his investment firm was notified on Thursday morning that the bank was “ceasing all international crypto-related wire transfers to and from” it effective immediately.
The reason for the shutdown, according to the customer, was because the bank could not verify the compliance of international wire transfers for cryptocurrency accounts. The move is alleged to be a response to an incident of international fraud associated with one of the bank’s clients.
Digital currency wallet Coinbase is among the companies that use Metropolitan for wire transfers, deposits, and its Shift bitcoin debit card. Metropolitan has yet to provide further guidance on whether it plans to restore the service.
It’s also unclear what might happen to the money that existing international clients have in the bank. Metropolitan did not return Fortune’s request for comment.
The bank’s abrupt decision is important for several reasons. First, Metropolitan has been growing rapidly following its November IPO, in part because of its friendly stance toward the fast-growing cryptocurrency market. Read more from fortune.com…
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