According to Lubin, a lot of banks were under pressure to cut ties with crypto.
By Mayowa Adebajo
Edited by Julia Sakovich
Updated
3 mins read
Joe Lubin, the CEO of Ethereum software firm Consensys, has revealed the details of how his company managed to survive after facing financial restrictions from regulatory authorities on two different occasions. He revealed this during a recent interview that was detailed in a CoinDesk report.
According to Lubin, a lot of banks were under pressure to cut ties with crypto. So much that the government had to create Operation Chokepoint 2.0, an effort aimed at cutting off banking services for crypto businesses.
He also went further, claiming that the ordeal was not just for crypto businesses alone but also for executives like himself.
Despite this, however, the CEO was full of praises for a yet-to-be-named bank, which he claims stalled for as long as possible to keep Consensys operational. He said in a part statement:
“The bank indicated to us they were getting a lot of pressure to shut down our account: a $7 billion company, always been an excellent customer for them.”
For clarity, Chokepoint was originally launched by the Department of Justice during the Obama administration. At the time, it was a politically motivated effort that sought to place banking restrictions on businesses not politically favored. This was whether or not such a business was legal.
Under former President Joe Biden, however, regulatory authorities like the Federal Deposit Insurance Corp (FDIC) applied more pressure with Chokepoint 2.0.
Lubin admitted to his personal bank account being hit, but it would take a while for the unnamed bank to bow to pressure and shut down the company account. By that time, though, the CEO shared that the company did turn to backup accounts to keep operations running.
While Lubin did not name the bank, sources with inside knowledge of the matter claim it was Wells Fargo.
Meanwhile, industry leaders are now beginning to discuss the impact of crypto debanking openly. If there is no one else, Ripple CEO Brad Garlinghouse and Andreessen Horowitz’s Marc Andreessen have, at least.
The issue has even reached Congress, where recent hearings have tried to establish whether or not financial regulators are unfairly targeting digital asset firms.
In any case, it appears that the crypto industry is now pushing for the reversal of various policies where it has met resistance in the past. That is since President Donald Trump’s administration officially began.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
