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Chokepoint 2.0: An Investigation Promises the Truth About Crypto's Biggest Conspiracy

Feb 18, 2025 - wired.com
Austin Federa, a crypto executive, faced challenges securing a mortgage due to his job in the cryptocurrency industry, highlighting broader issues of debanking faced by crypto firms in the US. Many crypto businesses report difficulties in accessing financial services, with banks often reluctant to serve them due to perceived risks. This has led to allegations of a government-led conspiracy, termed Operation Chokepoint 2.0, aimed at cutting crypto businesses out of the banking system. The theory suggests that federal agencies pressured banks to avoid crypto clients, although no concrete evidence has emerged to prove this.

Under the Trump administration, these allegations have gained attention, with congressional hearings investigating the matter. While some industry figures argue that informal guidance from regulators created a de facto ban on banking services for crypto firms, others believe the banks' caution stems from concerns about money laundering and fraud, especially after the collapse of crypto exchange FTX. Despite the lack of definitive proof of a conspiracy, the investigation itself has prompted some banks to reconsider their stance on crypto clients, offering hope for improved access to financial services for the industry.

Key takeaways:

  • Crypto businesses in the US face significant challenges in accessing banking services, with some banks refusing to work with them due to perceived risks associated with the industry.
  • Allegations of a government-led conspiracy, termed Operation Chokepoint 2.0, suggest that federal agencies pressured banks to sever ties with crypto firms, although no concrete evidence has been presented.
  • Congressional hearings have been held to investigate these allegations, with some industry figures claiming that the scrutiny is already leading to changes in banking policies towards crypto businesses.
  • Despite skepticism from some legal experts about the existence of a conspiracy, the investigation has prompted calls for reforms in how banks handle account closures and regulatory guidance.
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