JPM Coin Shuts Down Our Small Blockchain Startup For No Reason
EDIT: ccn.com picked up this story here.
Without warning and without any cited reasons we were sent this letter. Here’s the “story” even though details are scant :
We’ve had 15 years of personal business relations with Chase bank. With plenty of crypto-related activity within the last few years. We have regular contacts at two local branches. We were very happy with their services and so decided to open our business accounts with them for a social blockchain startup called cryptoraves. We applied for these accounts in-person with a branch representative and were assured that everything looked fine. Our accounts did get setup and we were performing business transactions as usual. Paying contractors, paying for web hosting, legal fees, etc. We did send two wire transfers to Gemini to buy ETH and LOOM in order to cover future blockchain fees. We suspected that these transactions flagged our account, but the Chase rep would not confirm this. They would not give us a reason for the closure. We called the number in the letter and the agent told us to visit a branch for these details. Visiting our branch resulted in no other details except when our branch rep pressed the agent (yep as the primary course of action, our rep called the same phone number), they said we were operating in an “prohibited industry”. I guess JPM’s own blockchain department didn’t get the memo?
So we are very confused and frustrated, especially since they wouldn’t tell us the reason why we were shut down. We are uncertain where to turn now as we still need normal banking services. Does anyone know of a bank that is considerate of legitimate blockchain businesses?
Bryan Plasters is the technical strategy and operations lead for cryptoraves, LLC. He is passionate about leveraging blockchain technology for maximum user experience. Email him at email@example.com.