JPMorgan Freezes Accounts of Two Stablecoin Startups Amid Risks
JPMorgan Chase has frozen bank accounts linked to two Y Combinator–backed stablecoin startups, BlindPay and Kontigo, after identifying exposure to sanctioned and high-risk jurisdictions. The firms, which focus primarily on Latin America, accessed JPMorgan’s services through Checkbook, a digital payments provider that partners with major financial institutions.
The actions followed internal flags tied to business activity involving Venezuela and other locations subject to U.S. sanctions, The Information reported. A JPMorgan spokesperson said the decision was not based on opposition to stablecoins, noting the bank serves both stablecoin issuers and related businesses and recently took a stablecoin issuer public.
Chargeback surge linked to JPMorgan account closures
Checkbook CEO PJ Gupta told The Information that BlindPay and Kontigo were among several companies associated with a rise in chargebacks that led the bank to close accounts. Gupta attributed the increase to rapid customer onboarding, saying the firms opened access broadly and a large number of users signed up online.
The account freezes come as JPMorgan and Checkbook expand their collaboration. In November 2024, the companies announced that Checkbook joined the J.P. Morgan Payments Partner Network, enabling corporate clients to send digital checks. Earlier in 2024, Checkbook broadened its B2B payments offerings, targeting sectors including legal services, government, and banking.
The bank did not respond to a request for comment by publication time.
Winklevoss alleges retaliation involving Gemini
In July, Gemini co-founder Tyler Winklevoss said JPMorgan Chase paused the crypto exchange’s re-onboarding process following his public criticism of the bank’s new data access policy. He alleged the move was anti-competitive and could harm fintech and crypto firms.
Separately, JPMorgan is considering offering crypto trading services, including spot and derivatives products, to institutional clients as demand grows amid a more favorable U.S. regulatory environment.
Stay informed, read the latest news right now!
Disclaimer
The content on TrustsCrypto.com is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are highly volatile, always do your own research before making decisions.
Some content may be assisted by AI and reviewed by our editorial team, but accuracy is not guaranteed. TrustsCrypto.com is not responsible for any losses resulting from the use of information provided.
