A firestorm has erupted within the crypto community as prominent founders accuse the Biden administration of weaponizing the banking system to crush the cryptocurrency industry. Dubbed “Operation Chokepoint 2.0,” these alleged actions have sparked outrage, drawing comparisons to controversial financial policies of the past.
The Accusations: Crypto Leaders Speak Out
The controversy exploded after Elon Musk questioned on X whether 30 tech founders had been secretly debanked. Tyler Winklevoss, co-founder of Gemini, responded bluntly:
“Yes. I was debanked because I’m in crypto, as was Gemini. They even assassinated several banks for supporting blockchain companies. This behavior is unlawful and evil.”
Brian Armstrong, CEO of Coinbase, confirmed the claims, adding that “this unethical and un-American campaign to kill crypto was likely spearheaded by Senator Elizabeth Warren and SEC Chair Gary Gensler.” Armstrong further stated that Coinbase has filed Freedom of Information Act (FOIA) requests to uncover the full scope of these actions.
Operation Chokepoint 2.0: A Revival of Financial Censorship?
The accusations point to a revived version of Operation Chokepoint, a 2013 initiative under the Obama administration targeting industries deemed “high risk,” like payday lenders and firearms dealers. Critics argue it unfairly denied banking access to legal businesses.
Crypto insiders claim the Biden-era version began in 2021 with a focus on blockchain companies. Marc Andreessen, a venture capitalist, referred to it on Joe Rogan’s podcast as “a calculated move to stifle innovation and exert political control.”
High-Profile Cases and Legal Battles
Several founders and companies have shared their stories:
• Andrew Torba (Gab): Described relentless account closures by banks, attributing it to government pressure.
• Caitlin Long (Custodia Bank): Facing repeated debanking, she is now suing the Federal Reserve in what is being called the most critical fight against financial censorship.
Brian Roemmele, a payment processing veteran, noted that “Operation Chokepoint 2.0 destroyed trust in the financial system and raised business costs by 10x.”
Political Fallout and the Push for Reform
Crypto leaders claim these actions have backfired politically. Armstrong stated, “This contributed to Democrats losing the election. They must distance themselves from Warren if they want to recover.”
Tyler Winklevoss accused the government of “assassinating banks that supported blockchain companies.” Marc Andreessen warned of broader implications, saying:
“This isn’t just about crypto—it’s about freedom and innovation. Using financial levers for political control must stop.”
What’s Next?
The crypto community is rallying for transparency and accountability:
• FOIA Requests: Coinbase is demanding documents to uncover the full extent of the debanking efforts.
• Legal Challenges: Caitlin Long’s January 2025 hearing could set a precedent for fighting financial censorship.
As the fight escalates, crypto advocates are calling for reforms to ensure that the banking system is not used as a tool of political manipulation.
