Operation Chokepoint 2.0: Crypto Founders Allegedly Silenced by Secret Debanking Practices

The financial exclusion of tech startups, especially in the crypto industry, has emerged as a hot topic after venture capital titan Marc Andreessen’s recent claims about government-backed debanking. On The Joe Rogan Experience podcast, Andreessen accused the Biden administration of reviving a controversial practice known as “Operation Chokepoint 2.0,” targeting not just the cannabis and firearms industries, but also politically disfavored tech founders—particularly those in the cryptocurrency space.

Operation Chokepoint first emerged during the Obama administration, a program designed to cut off financial services to high-risk sectors like marijuana dispensaries and gun stores. Now, according to Andreessen, a new iteration of this initiative is taking place, aimed at suppressing the voices of political opponents and startup innovators in the tech world.

“Debanked” Founders: A Silent War on Crypto Startups

Andreessen’s claims center around over 30 tech founders who allegedly lost access to basic banking services in the past four years, with little to no explanation or recourse. The venture capitalist calls it a direct attack on legal businesses, comparing it to the earlier version of Chokepoint. “Chokepoint 2.0 is primarily targeting political enemies and disfavored tech startups,” he said, adding that crypto companies, in particular, have been unfairly impacted.

The practice of debanking involves financial institutions cutting off services to individuals or businesses without warning or clear justification, leaving them unable to access basic banking functions

like payments, processing services, or even insurance. For tech and crypto startups, this can be devastating, effectively crippling their operations and stifling innovation.

This issue gained wider attention when Tesla CEO and X (formerly Twitter) founder Elon Musk tweeted about the controversy, amplifying Andreessen’s claims. Musk shared a clip from the podcast, stating, “Did you know that 30 tech founders were secretly debanked?” His tweet quickly sparked a wave of reactions, including strong criticism from Coinbase CEO Brian Armstrong, who condemned the practice as “one of the most unethical and un-American things that happened in the Biden administration.”

Armstrong also speculated that the fingerprints of Senator Elizabeth Warren, a long-time crypto critic, were all over the debanking campaign, urging the Democratic Party to distance itself from her stance if it hoped to rebuild its political credibility.

The Lack of Due Process in Debanking

According to Andreessen, one of the most troubling aspects of debanking is the complete lack of transparency and due process. "There’s no due process. None of this is written down. There’s no rules, no court, no appeal,” he said, emphasizing the difficulty in challenging these decisions or even finding out why they happened in the first place.

Caitlin Long, CEO of Custodia Bank, echoed these concerns, sharing her own experiences with debanking. She revealed that her company had been repeatedly debanked, and has even filed a lawsuit against the Federal Reserve, with oral arguments scheduled for January 2025. Her case represents a broader concern, as similar issues have surfaced in other countries, including the UK and Australia, with crypto companies reportedly targeted due to their political affiliations or industry.

International Repercussions and Growing Skepticism

Although the UK’s Financial Conduct Authority (FCA) reviewed claims of politically motivated debanking and found no direct evidence, skepticism remains high. Many crypto advocates are wary of the growing trend, especially since it mirrors similar actions taken in Australia, where allegations of politically motivated debanking first emerged during the COVID-19 pandemic.

The chilling effect on the tech and crypto sectors is undeniable, with startups and industry leaders expressing concern that such tactics could stifle innovation and the progress of the digital economy.

Looking Ahead: A Potential Legal Battle

As the debate surrounding “Operation Chokepoint 2.0” heats up, it’s clear that the issue of debanking isn’t confined to the U.S. alone. With major legal challenges underway and growing scrutiny on financial institutions’ role in limiting access to banking services, the crypto and tech sectors may soon face a reckoning.

The stakes are high, and if the practice continues unchecked, it could set a dangerous precedent for the future of financial services, especially in industries that challenge the status quo. Whether through legal action or public pushback, advocates for tech startups and crypto entrepreneurs are calling for transparency, fairness, and due process to ensure that financial exclusion doesn’t become a tool for silencing innovation.

4o miniOperation Chokepoint 2.0: Crypto Founders Allegedly Silenced by Secret Debanking Practices

The financial exclusion of tech startups, especially in the crypto industry, has emerged as a hot topic after venture capital titan Marc Andreessen’s recent claims about government-backed debanking. On The Joe Rogan Experience podcast, Andreessen accused the Biden administration of reviving a controversial practice known as “Operation Chokepoint 2.0,” targeting not just the cannabis and firearms industries, but also politically disfavored tech founders—particularly those in the cryptocurrency space.

Operation Chokepoint first emerged during the Obama administration, a program designed to cut off financial services to high-risk sectors like marijuana dispensaries and gun stores. Now, according to Andreessen, a new iteration of this initiative is taking place, aimed at suppressing the voices of political opponents and startup innovators in the tech world.

“Debanked” Founders: A Silent War on Crypto Startups

Andreessen’s claims center around over 30 tech founders who allegedly lost access to basic banking services in the past four years, with little to no explanation or recourse. The venture capitalist calls it a direct attack on legal businesses, comparing it to the earlier version of Chokepoint. “Chokepoint 2.0 is primarily targeting political enemies and disfavored tech startups,” he said, adding that crypto companies, in particular, have been unfairly impacted.

The practice of debanking involves financial institutions cutting off services to individuals or businesses without warning or clear justification, leaving them unable to access basic banking functions

like payments, processing services, or even insurance. For tech and crypto startups, this can be devastating, effectively crippling their operations and stifling innovation.

This issue gained wider attention when Tesla CEO and X (formerly Twitter) founder Elon Musk tweeted about the controversy, amplifying Andreessen’s claims. Musk shared a clip from the podcast, stating, “Did you know that 30 tech founders were secretly debanked?” His tweet quickly sparked a wave of reactions, including strong criticism from Coinbase CEO Brian Armstrong, who condemned the practice as “one of the most unethical and un-American things that happened in the Biden administration.”

Armstrong also speculated that the fingerprints of Senator Elizabeth Warren, a long-time crypto critic, were all over the debanking campaign, urging the Democratic Party to distance itself from her stance if it hoped to rebuild its political credibility.

The Lack of Due Process in Debanking

According to Andreessen, one of the most troubling aspects of debanking is the complete lack of transparency and due process. "There’s no due process. None of this is written down. There’s no rules, no court, no appeal,” he said, emphasizing the difficulty in challenging these decisions or even finding out why they happened in the first place.

Caitlin Long, CEO of Custodia Bank, echoed these concerns, sharing her own experiences with debanking. She revealed that her company had been repeatedly debanked, and has even filed a lawsuit against the Federal Reserve, with oral arguments scheduled for January 2025. Her case represents a broader concern, as similar issues have surfaced in other countries, including the UK and Australia, with crypto companies reportedly targeted due to their political affiliations or industry.

International Repercussions and Growing Skepticism

Although the UK’s Financial Conduct Authority (FCA) reviewed claims of politically motivated debanking and found no direct evidence, skepticism remains high. Many crypto advocates are wary of the growing trend, especially since it mirrors similar actions taken in Australia, where allegations of politically motivated debanking first emerged during the COVID-19 pandemic.

The chilling effect on the tech and crypto sectors is undeniable, with startups and industry leaders expressing concern that such tactics could stifle innovation and the progress of the digital economy.

Looking Ahead: A Potential Legal Battle

As the debate surrounding “Operation Chokepoint 2.0” heats up, it’s clear that the issue of debanking isn’t confined to the U.S. alone. With major legal challenges underway and growing scrutiny on financial institutions’ role in limiting access to banking services, the crypto and tech sectors may soon face a reckoning.

The stakes are high, and if the practice continues unchecked, it could set a dangerous precedent for the future of financial services, especially in industries that challenge the status quo. Whether through legal action or public pushback, advocates for tech startups and crypto entrepreneurs are calling for transparency, fairness, and due process to ensure that financial exclusion doesn’t become a tool for silencing innovation.