Oluwapelumi Adejumo
Coinbase CEO Brian Armstrong has revealed ongoing efforts to obtain documentation through the Freedom of Information Act (FOIA) to uncover US banks’ full scope of crypto-related account closures.
In a Nov. 27 post on X, Armstrong “confirmed” that several banks have cut ties with crypto stakeholders solely due to their involvement in the industry. He labeled these actions as unethical and contrary to American values.
Armstrong suggested that anti-crypto sentiment, fueled by figures like Senator Elizabeth Warren and outgoing SEC Chair Gary Gensler, could be at the root of these decisions. He said:
“My guess is we’ll find Elizabeth Warren’s fingerprints all over it (Biden himself was probably unaware).”
He noted that these actions may have contributed to recent political losses for the Democratic Party. Armstrong urged the party to distance itself from figures like Senator Warren, whom he labeled a liability to their future electoral prospects. He added:
“Warren and Gensler tried to unlawfully kill our entire industry, and it was a major factor in the Dems losing the election.”
Operation Chokepoint 2.0
Meanwhile, other crypto stakeholders have shared similar experiences of being denied access to financial services.
On Nov. 27, Roman Storm, a developer behind the controversial Tornado Cash project, revealed that he had faced repeated debanking due to his association with the sanctioned crypto mixer. He expressed frustration, stating that he has “lost count” of the times this has occurred over the past two and a half years.
Sam Kazemian, the founder of Frax Finance, shared a similar experience. He disclosed that JPMorgan Chase had informed him last December that they would close the accounts of individuals whose primary income stems from crypto.
He attributed the decision to directives from top executives, adding that most customers likely receive no explanation for such closures. He stated:
“I had a close relationship with my banker so I assume 99% of people wouldn’t even get that kind of transparency/explanation. Wanted to add my own name to the debanked OCP list. It’s real. It happened.”
These revelations align with statements made by venture capitalist Marc Andreessen, who recently highlighted the issue on Joe Rogan’s podcast.
Andreessen accused the Biden administration of expanding “Operation Choke Point“—initially aimed at industries like firearms and marijuana—to target crypto and tech startups. According to Andreessen, at least 30 founders have been debanked in the last four years, with no warnings or avenues to appeal.
The crypto community has since adopted the term “Operation Choke Point 2.0” to describe what they perceive as coordinated efforts by US regulators to undermine the sector.
