Tuesday, May 24

JPMorgan Chase Bank Closed Uniswap Founder’s Accounts


For Hannah Perez

Hayden Adams, founder of one of the largest decentralized exchanges, took to Twitter to denounce the sudden and unjustified closure of his account.

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One of the major banks in the United States has closed the bank accounts of Hayden Adams, the founder of the popular decentralized exchange (DEX), Uniswap. This was reported by Adams through his Twitter account on Sunday.

According to the founder, the banking giant JPMorgan Chase closed their bank accounts without prior notification or explanation of the reasons behind the move. Adams added that he is not the first person in the digital currency sphere to experience such a block from a bank.

This week JPMorgan Chase closed my bank accounts without notice or explanation. I know many people and companies that have been subjected to similar attacks simply for working in the cryptocurrency industry. Thanks for making it personal.

SEC investigates Uniswap

The closure of Adams’ bank accounts comes four months after the US Securities and Exchange Commission (SEC) allegedly opened an investigation into Uniswap Labs, the developer of the exchange. A report of Wall Street Journal September released the news.

Citing sources familiar with it, the report noted that US regulators were seeking information on how investors use the exchange. Uniswap and how it is marketed through the platform.

At that time, a spokesman for Uniswap Labs told the outlet that the company is “committed to complying with the laws and regulations that govern our industry and to providing information to regulators that will assist them with any queries“. It is worth noting that Uniswap, network-based Ethereum, is among the ten Major DEXs by Total Value Locked (TVL) Volume.

While the publication did not provide further details on the SEC investigation, the report was interpreted as a sign of regulators’ intent to exercise more oversight in the cryptocurrency space, specifically in the sphere of decentralized finance (DeFi). ), something that the president of the agency, Gary Gensler, had already hinted at last year.

Shortly after, and amid rumors of stricter regulation, Uniswap Labs hired Hari Sevugan, a former spokesman for former President Barack Obama, as its communications chief to help the developer navigate political waters.

A silent attack on DeFi?

Although there has been no further information about the investigation, some have claimed that the recent closure of Adams’ accounts is a silent attack on the industry. At least that was the view of Brian Quintenz, former chairman of the US Commodity Futures Trading Commission (CFTC), who now works as a partner at crypto investment firm, Andreessen Horowitz.

Quintenz shared his vision in a tweet, in response to the publication of the founder of Uniswap:

Probably a shadow bank takedown of cryptocurrencies by bank examiners [de la Reserva Federal] The [de la Oficina del Contralor de la Moneda], with instructions from above. If the examiner tells a bank that a certain customer is too risky and the bank terminates that relationship, the bank has a contract that prevents it from telling that customer why.

The founder’s post generally had mixed responses. Among them, the Democratic candidate for the United States Congress, Matt West, expressed his rejection of the measure and stressed that it is part of why we need a clear regulatory framework for cryptocurrencies in the country. Also the official account of Twitter customer service JPMorgan responded to the publication asking Adams for information about what happened through a private message.

as you remembered The BlockAlthough the bank has taken a more receptive attitude towards digital currencies in recent years, this is not the first time that JPMorgan close an account of a crypto executive or company. In 2018, the bank closed an account to Erik Voorgees, founder of the cryptocurrency exchange. ShapeShift, and had previously closed an account with the exchange Kraken.


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Sources: Twitter, The Block, CoinDesk

Article versioned by Hannah Estefanía Pérez / DailyBitcoin

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