As a seasoned crypto investor with a decade-long journey under my belt, I find it alarming to learn about Operation Chokepoint 2.0 and the apparent debanking of tech founders. My first encounter with the banking system was back in the early days of Bitcoin when I tried to open an account for my mining operations, only to be met with closed doors.
Over thirty tech and digital currency innovators in the USA are said to have been barred from using traditional banking services, which some experts claim is a coordinated strategy known as “Operation Chokepoint 2.0.
Did you realize that 30 technology entrepreneurs were mysteriously denied banking services?” This was posed by Elon Musk, the founder of Tesla, during a Nov. 27 post on his platform.
In the article, Elon Musk posted a segment from the Joe Rogan Experience podcast where Marc Andreessen, co-founder of Andreessen Horowitz, expressed his views on the topic. In this segment, Andreessen asserts:
“Operation Chokepoint 2.0 is primarily against their political enemies and disfavoured tech startups. In the tech world, we had over 30 tech founders debanked in the last four years. It’s been a big recurring pattern.”
In a blog post on November 27th, Coinbase’s co-founder and CEO, Brian Armstrong, joined the chorus of critics, expressing concerns about alleged questionable and non-democratic actions taking place within the administration of President Biden.
Armstrong states that Coinbase is gathering Freedom of Information Act petitions with the aim of identifying individuals who are actively pushing for debanking initiatives.
Earlier this year, when some banks that supported cryptocurrencies collapsed, it ignited the initial accusations of Operation Chokepoint 2.0. Detractors, which include venture capitalist Nic Carter, characterized it as a government strategy to persuade banks into severing connections with cryptocurrency businesses.
Frax Finance founder recalls JPMorgan account closure
Despite the unverified claims about the operation, representatives from the cryptocurrency sector have highlighted various difficulties they encounter when trying to access banking services.
In a blog post dated November 28th, Sam Kazemian, founder of Frax Finance, shared that he had a discussion with JPMorgan Chase in December 2022. According to his account, the bank’s stance was: “We will need to shut down any accounts where we are certain that the main source of income or wealth is derived from cryptocurrency,” a statement Kazemian claimed was conveyed by JPMorgan CEO Jamie Dimon.
In March 2023, the U.S. banking sector experienced difficulties due to the unexpected failure of Silicon Valley Bank and the self-initiated dissolution of Silvergate Bank. Additionally, Signature Bank was compelled to shut down by New York authorities on March 12, just two days after Silvergate Bank’s closure.
The sudden collapse of three crypto-friendly US banks was called Operation Chokepoint 2.0 by crypto venture capitalist Nic Carter, who saw it as a “coordinated effort” to unbank the crypto industry.
Tech industry debanking is why Andreessen supported Trump
Andreessen chose to back Donald Trump during the U.S. presidential election on November 5, due to his concerns about the ongoing de-banking of tech and crypto industries.
During the three-hour podcast episode with Joe Rogan, Andreessen stated:
“This is why we ended up supporting Trump. We can’t live in a world where somebody starts a company that’s completely legal, and then gets sanctioned and embargoed by the US government, through a completely unaccountable, no-due process.”
The general consensus is that Trump’s election win could be beneficial for cryptocurrency regulations and risky investments like stocks, up until 2028. Interest in leveraged Ethereum (ETH) exchange-traded funds has surged more than 160% since the election, suggesting a possible increase in the value of ETH to over $4,000.
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2024-11-28 17:03