In recent days, several founders of American cryptocurrency companies have claimed that they are being targeted by the Biden administration through pressure on banks to cut ties with blockchain technology companies. The claims, which have sparked heated debate on social media, center around allegations that banks have been pressured to end their relationships with these companies.

Several banks have reportedly come under pressure due to directives from Biden’s administration. Elon Musk brought attention to the issue when he asked his followers on social media platform X, “Did you know that 30 tech startup founders were secretly stripped of their bank accounts?” Gemini co-founder Tyler Winklevoss responded, saying that he and Gemini were also banned from their bank for dealing in cryptocurrency.

He estimated the number of affected companies to be much higher than 30. A Coinbase spokesperson, Brian Armstrong, also confirmed these allegations. The founders contend that the actions taken against them are part of a strategy known as “Operation Chokepoint,” an Obama-era initiative that aimed to disable financial services in high-risk industries.

The original program, which was launched in 2013, targeted payday lenders, firearms dealers, and telemarketers. Critics argued that the program often targeted legitimate businesses illegally. In 2017, Operation Chokepoint was officially terminated during the Trump administration. However, cryptocurrency industry insiders claim that it has returned in 2021, shortly after Biden took office, with a focus on the crypto industry.

Venture capitalist Marc Andreessen appeared on Joe Rogan’s show to discuss the operation, stating that at least 30 tech company founders have been targeted for political reasons and had their bank accounts closed. Andrew Torba, founder of social media platform Gab, has also been affected by these actions, describing a relentless cycle of account closures that make it impossible to store money, pay payroll, or pay bills.

Despite opening accounts in large banks, credit unions, and even Christian institutions, he was excluded from these institutions within weeks. Torba has stated that the reason for these exclusions was always the same – the banks could close accounts at any time, for any reason, or for no reason at all.

However, behind the scenes, these banks were being pressured by the federal government. The allegations have not stopped with individual companies. Caitlin Long, CEO of Bank Custodian, has confirmed her own struggles with banks and is currently fighting an ongoing lawsuit against the Federal Reserve.

Prominent crypto lawyer John Deaton has called Long’s case the most important fight against unelected bureaucrats and the deep state protecting the banking system’s status quo. Industry veteran Brian Roemmele has also commented on the issue. Roemmele has worked in commercial banking since the 1980s and has witnessed the original Operation Chokepoint destroying thousands of legitimate businesses overnight.

He argues that the current iteration of the program is even worse, with the government using banks as instruments of state corruption. The political implications and industrial impacts of these actions are significant. The founders and industry leaders contend that the Biden administration is systematically killing blockchain companies by targeting their cooperating banks.

They argue that it was a major factor in the Democrats losing the election and that Senator Elizabeth Warren should be held accountable and distanced from the party if it hopes to rebuild.

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