What happens when 30+ tech founders lose access to banking without warning? According to Marc Andreessen, this is no accident – it's a government conspiracy.
Venture capital firm Andreessen Horowitz said the Biden administration is using divestment as a tool for what he calls “Operation Chokepoint 2.0.”
Speaking of Joe Rogan's experience Podcast On Tuesday, Andreessen said that “more than 30 founders have been put out of business in the last four years,” describing it as a direct attack on legitimate businesses.
The term Operation Chokepoint comes from an Obama-era program that cuts off financial services to controversial or high-risk industries, such as marijuana dispensaries and gun shops.
Andreessen accused the Biden administration of renewing and expanding this strategy to target political opponents and unpopular tech startups, particularly in the crypto industry.
“The Chokepoint 1.0 operation was about 15 years ago with pot and guns,” he explained. “Chokepoint 2.0 is primarily against their political enemies and technology startups.”
Crypto startups, Andresen said, now face similar exclusionary practices, denied banking services, payment processors and even insurance coverage — crippling their ability to operate.
Tesla CEO and X founder Elon Musk highlighted the issue:Tweeting Clip from podcast: “Did You Know 30 Tech Founders Are Secretly Banned?” he said.
The tweet drew widespread criticism, with Coinbase CEO Brian Armstrong writing on X on Wednesday that it was “one of the most unethical and un-American things to happen in the Biden administration.”
“My guess is that we have Elizabeth Warren's fingerprints all over it … the Democratic Party needs to distance themselves even more if they want to realize that Warren is responsible and have any hope of rebuilding,” Armstrong said.
Debanking refers to the process of a bank or financial institution canceling or restricting a customer's account, often without providing clear reasons.
“There is no due process. None of this is written. Andreessen There is no law: no court. There is no decision making process. There is no appeal. Who are you appealing to? Who do you go to to get your bank account back?
Caitlin Long, CEO of Custodia Bank It has been shared. Her company's experience of being suspended from the bank on Wednesday.
“Yes—we've never betrayed my company,” she tweeted. “Stay tuned for our pending lawsuit against the feds. Oral arguments are set for January 21st.”
The issue of debanking is not limited to the US.In September 2023, the UK's Financial Conduct Authority (FCA) It has been evaluated Claims of politically motivated banking.
Australia has also been accused of shutting down banking services linked to crypto companies that allegedly started during the Covid-19 period.
While the FCA said there was no evidence that accounts were being closed primarily because of political views, the findings raised serious concerns.
Edited by Sebastian Sinclair
Daily Debrief Newspaper
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