Facing Pressure: ConsenSys Experiences Bank Deplatforming Twice
The authorities in the United States have deplatformed ConsenSys on two occasions, highlighting the Operation Chokepoint 2.0 aiming to exclude crypto companies from the traditional banking system.
A Blockchain Giant Under Attack
Joe Lubin, CEO of ConsenSys, disclosed that the company has been deplatformed twice due to pressure from US authorities. Despite the resistance of their bank in the previous episode, regulatory offensive ultimately severed their relationship. This narrative illustrates the scale of Operation Chokepoint 2.0, an informal initiative seeking to exclude crypto businesses from the traditional banking system.
Increasing Pressure on US Banks
The latest episode involved a major US bank, allegedly Wells Fargo. It reportedly resisted as much as possible before giving in to pressure from regulatory authorities under the Biden administration.
The bank informed us that they were under tremendous pressure to close our account. We are a $7 billion company, still an excellent client for them.
They told us: ‘We value you, we do not want to do this. We will delay the process as much as possible and notify you if we have to take action.’
Joe Lubin
This incident recalls the first version of Operation Chokepoint, initiated under the Obama administration to restrict access to banking services for politically sensitive industries such as payday lenders and firearm sellers. Today, it is the crypto industry facing systematic exclusion.
The Growing Role of Crypto in the Political Debate
As deplatforming practices in the crypto sphere become a hot topic in the US, several influential figures in the sector, including Marc Andreessen (a16z) and Brad Garlinghouse (Ripple), have publicly denounced these tactics. The issue is now being examined by Congress, marking a turning point in the battle for industry recognition and regulation.
The political shift triggered by Donald Trump’s election in November also had an unexpected impact. The day after the election, a bank representative surprisingly reached out to ConsenSys’ financial team.
The day after the election, the bank contacted our financial team and asked, ‘Hey, would you like to go see a basketball game?’
This seemingly innocuous gesture could reflect an opportunistic change in attitude, with some financial institutions anticipating a more crypto-friendly regulatory climate under a Republican administration.
A Troubling Precedent for the Industry
Prior to the Wells Fargo incident, Lubin had already faced an initial wave of deplatforming, carried out in an even more brutal manner by another bank whose name he did not disclose. His personal and ConsenSys’ accounts were closed without detailed explanation, accompanied only by a generic letter.
These repeated deplatformings highlight a systemic vulnerability for crypto companies reliant on the traditional banking network. As regulatory pressure intensifies, the need for alternative solutions such as stablecoins, decentralized finance (DeFi), and crypto-friendly banks becomes increasingly evident.
