Bank of America Allegedly Closes Coinbase User Accounts15. July 2023
• Bank of America is reportedly closing the personal accounts of Coinbase users.
• Coinbase CEO Brian Armstrong has launched a poll to find out if the bank is really cracking down on its customers trading in Bitcoin (BTC).
• The development comes weeks after the SEC filed a lawsuit against Coinbase.
Bank of America Allegedly Closes Accounts of Coinbase Users
Recent allegations suggest that the Bank of America (BOA) is closing the personal bank accounts of people trading on the Coinbase crypto exchange. This could be a fresh setback for the cryptocurrency sector, as BOA appears to be taking precautionary measures following recent lawsuits by US Securities and Exchange Commission (SEC) against major crypto players Binance (BNB) and Coinbase (NASDAQ: COIN).
Muneeb Ali’s Account Closed After 15 Years
Muneeb Ali, co-founder of layer 2 blockchain firm Stacks (STX), claimed his account was closed by BOA after 15 years. According to him, this was because he used his account to process Bitcoin (BTC) transactions on Coinbase. However, BOA did not explain why they closed his checking and savings account but said they had to suspend his credit card account as his “risk profile no longer meets their standards”.
Coinbase CEO Launches Poll
Alarmed at this development, Coinbase CEO Brian Armstrong turned to Twitter to find out if there were more such cases. He launched a poll with his followers asking them if anyone else had experienced a similar situation. At the time of writing, 9.1% of around 12000 participants said that Bank of America had also closed their accounts while 19.1% had not faced any problem with their accounts yet.
SEC Lawsuit Against Crypto Players
The development comes weeks after SEC filed lawsuits against major crypto players including Binance and Coinbase accusing them of illegal activities like operating unregistered securities exchanges and conducting unregistered securities offerings respectively. It remains to be seen how these developments will affect the industry in general and what corrective steps authorities may take against cryptocurrency exchanges in particular going forward.
While it can’t be confirmed yet if Bank Of America is really cracking down on its customers trading in Bitcoin (BTC), it does appear that this news has created an air of caution among crypto traders who are now more aware than ever before about potential risks associated with using banks for such transactions.