Originally published on: November 28, 2024
Reports have surfaced that over 30 technology and cryptocurrency founders in the US have been denied banking services in a suspected coordinated effort known as “Operation Chokepoint 2.0.”
In a recent X post, Tesla’s Elon Musk brought attention to this issue, sharing a video of Andreessen Horowitz co-founder Marc Andreessen discussing the situation on the Joe Rogan Experience podcast. Coinbase’s CEO Brian Armstrong also spoke out against the alleged actions, calling them unethical and un-American.
Armstrong revealed that Coinbase is taking steps to identify those involved in the debanking operations through Freedom of Information Act requests. This controversy follows the collapse of several crypto-friendly banks earlier in the year, leading to suspicions of government intervention.
While the existence of Operation Chokepoint 2.0 has not been officially confirmed, industry insiders have expressed difficulties in accessing banking services. Founder of Frax Finance, Sam Kazemian, recounted a conversation with JPMorgan Chase where they stated they would close accounts linked to crypto income sources.
The sudden collapse of banks like Silicon Valley Bank and Silvergate Bank in March 2023, along with regulatory pressure on Signature Bank, added fuel to the Operation Chokepoint 2.0 speculation. This series of events prompted crypto venture capitalist Nic Carter to describe the actions as a coordinated effort to exclude the crypto industry from the banking sector.
In light of these challenges, Andreessen’s decision to support Donald Trump in the US presidential election gained attention. During his podcast appearance, he discussed the potential impact of Trump’s victory on crypto regulations and assets, indicating a positive outlook for the industry.
The aftermath of these debanking incidents has sparked concerns within the tech and crypto communities, highlighting the need for clearer regulations and safeguards for industry players. Stay informed with our latest articles on crypto developments and subscribe to our Finance Redefined newsletter for weekly updates and insights.
