JPMorgan Chase closes Uniswap founder's bank accounts

Quick Take

  • JPMorgan Chase has closed the bank accounts of Hayden Adams, the founder of the largest decentralized exchange protocol Uniswap.
  • The move is “likely a shadow de-banking of crypto” by Fed or OCC bank examiners, according to former CFTC chairman Brian Quintenz.
advertisement

Uniswap founder Hayden Adams tweeted Sunday that JPMorgan Chase has closed his bank accounts without notice or explanation.

"I know many individuals and companies who have been similarly targeted simply for working in the crypto industry," wrote Adams. "Thanks for making it a personal."

Adams' bank accounts were closed last week. The move comes a few months after the US Securities and Exchange Commission (SEC) reportedly started investigating Uniswap Labs, the main developer of the world's largest decentralized exchange protocol Uniswap.

In September, the Wall Street Journal reported, citing "people familiar with the matter," that the SEC enforcement attorneys are investigating Uniswap Labs about how investors use the decentralized exchange protocol and how it is marketed.

At the time, a Uniswap Labs spokesperson told The Journal that the firm is "committed to complying with the laws and regulations governing our industry and to providing information to regulators that will assist them with any inquiry."

Brian Quintenz, the former chairman of the US Commodity Futures Trading Commission (CFTC), who now works as an advisory partner at the crypto-focused investment firm Andreessen Horowitz, weighed in on the matter.

"Likely a shadow de-banking of crypto by [The Federal Reserve] or [The Office of the Comptroller of the Currency] bank examiners, with direction from the top. If the examiner told a bank that a certain customer is too risky and the bank ended that relationship, the bank is contractually prevented from telling that customer why," Quintenz tweeted as a reply to Adams' initial tweet.

This is not the first time JPMorgan Chase has closed an account of a crypto executive or a crypto firm. In 2018, the bank closed an account of Erik Voorhees, founder of the crypto exchange ShapeShift. The bank has previously also shut down an account of crypto exchange Kraken's payroll account.

For more breaking stories like this, make sure to follow The Block on Twitter.


© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

5 Steps to a Successful Crypto AML Program

As cryptocurrencies become increasingly mainstream, regulators, the media and policymakers are paying more attention to the financial crime risks associated with them. But what are the biggest compliance challenges crypto firms face, and what does a best practice AML program look like? 
Read Full Story
Sponsored Post

Layer-2 Scaling Solutions: A Framework for Comparison - Commissioned by Polygon

Ethereum had a breakout year in 2021. It’s native asset, ETH’s, market capitalization surpassed $500 billion for the first time. Its network facilitated upwards of $7 trillion value transfer. Non-fungible tokens (NFTs) emerged as another “killer application” that have put its technology on the global stage and caught the attention of the masses.
Read Full Story
May 5, 2022, 3:17PM UTC
More