ChainCatcher reported that the Biden administration’s regulatory crackdown on cryptocurrencies has led to a major reorganization of a small but high-profile crypto bank, according to Fox Business. The media learned that Custodia Bank, a Wyoming financial institution that provides banking services to cryptocurrency companies, notified employees on Thursday morning that it would lay off 9 of its 36 employees to preserve capital in its court battle with the U.S. central bank.
The layoffs come as Custodia is locked in a legal battle with the Federal Reserve over so-called master accounts, which allow state-chartered institutions to access the central bank’s liquidity facilities, including payment services. Without a master account, banks are forced to do business through other institutions that have master accounts, which often incurs high costs.