ConsenSys Survives U.S. Crypto Crackdown: CEO Reveals Banking Lifeline

ConsenSys, a leading Ethereum-focused software company, has faced significant challenges from U.S. authorities' efforts to de-bank crypto-related businesses. Despite these obstacles, the company's founder and CEO, Joe Lubin, has revealed how ConsenSys managed to survive these attacks, with substantial support from its banking partner.

Operation Chokepoint 2.0, launched under President Biden's administration, targeted the crypto industry by pressuring banks to shut down crypto business accounts. Lubin shared in an interview that ConsenSys weathered this storm by maintaining multiple backup accounts, ensuring its operations were not disrupted. The company's bank, whose name Lubin declined to disclose, resisted efforts to close ConsenSys' account, despite being under pressure to do so.

Lubin recalled a previous run-in with Operation Chokepoint, where an earlier banking partner closed his personal and company accounts with little explanation. However, following Donald Trump's election victory, the same bank, identified as Wells Fargo through anonymous sources, reached out to ConsenSys' finance team, signaling a shift in the relationship.

Crypto de-banking has become a growing concern, with prominent industry figures like Marc Andreessen and Brad Garlinghouse speaking out about it. The issue has also gained attention in Congress, where hearings are taking place to address these pressures on the industry. In December, the White House crypto Czar David Sacks called for an investigation into Operation Choke Point 2.0 shortly after his appointment.