From JPMorgan’s side, the support team replied to the tweet by requesting the founder to refer to their messaging system to work out the unfortunate event.
According to a January 23rd tweet by Hayden Adams, the founder of cryptocurrency exchange Uniswap was quietly deprived of the ownership of JPMorgan accounts. In the recent tweet, the young entrepreneur claimed that the American Multinational bank closed his accounts with no prior warning or alarm.
Hayden, in his tweet, also mentioned how many people working in the crypto industry have been specifically picked out and denied options merely because of the work they do. He went on to say that the fact that he has been denied his bank accounts has made the feud personal.
In a recent interview, the Chief Executive Officer of JPMorgan’s digital asset unit Onyx, Umar Farooq, was all praise for the advent of the crypto industry. However, the recent shady move by the major bank has revealed a rather unnoticed aspect of the Banking industry.
The practice of shadow de-banking of crypto users has come to light recently. These kinds of sneaky activities are an excellent solution for banks to shut down crypto activities without actually having to gain much traction. According to a tweet by the former Commodity Futures Trading Commission (CFTC) Commissioner, Brian Quintenz, this is a signature shadow de-banking move by the Federal Reserve or the Office of the Comptroller of the Currency bank examiners. Replying to Hayden’s tweet on the unforeseen event, Quintenz claimed that the shady move could have been carried out on instructions from the officials at the top. In addition, the bank has contractually authorized control to disrupt any person’s account in case they appear to be a difficult/risky customer.
Citing a Nov.20 Wall Street Journal article by pro-crypto senator Cynthia Lummis, Quintez made the propaganda against crypto workers extremely easy to comprehend. Apparently, Lummis, in the article, argued that the new chiefs at the Federal Reserve were intentionally preventing Financial Technology and crypto innovation companies to be established, specifically in her state of Wyoming where the special-purpose depository institutions (SPDIs) have been allowed to set up completely functional crypto banks.
In an online furor caused after Hayden’s tweet, many Twitter users replied to the complaint by stating their troubles with banks simply because they had a history in crypto dealings.
From JPMorgan’s side, the support team replied to the tweet by requesting the founder to refer to their messaging system to work out the unfortunate event. In another reaction, Democratic Candidate for Congress Matt West asked for a better regulatory infrastructure that would prevent such events from happening in the future.
Recently, in a report by CryptoPotato, Bitcoin trader and exchange owner Allan Flynn filed a lawsuit against Australian Banks Westpac and ANZ for shutting his accounts which ended up costing him a major loss in funds and time.
Sanaa is a chemistry major and a Blockchain enthusiast. As a science student, her research skills enable her to understand the intricacies of Financial Markets. She believes that Blockchain technology has the potential to revolutionize every industry in the world.
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