Cryptoraves, a crypto startup, is crying foul after its bank, JP Morgan Chase, shut down its account without offering a satisfactory explanation. The bank sent a letter to the startup’s founders on February 15, notifying them that it had decided to shut down their accounts.
The founders came out recently to expose the closure of their account, expressing great disappointment with the bank. According to their Medium post, the founders have held personal accounts with JP Morgan for the past 15 years. In that time, they claim to have received great service.
However, things changed when they decided to open an account for their startup. Since they were clients at JP Morgan, it was the logical option. Everything was sailing smoothly at first. They were “paying contractors, paying for web hosting, legal fees, etc.”
It was when they decided to purchase some Ether and LOOM cryptos from Gemini that the bank flagged them off. The bank representative didn’t confirm this, however. They received the letter a few days later, informing them of their account closure.
Interestingly, the Cryptoraves account was closed on February 15, just a day after the launch of JPM Coin. The coin is the first by a bank in the U.S and will target the bank’s $6 trillion payments business. As such, it is clear that the bank was extensively aware of cryptocurrencies and the laws that pertain to them.
In Cryptoraves case, their tokens have no actual value. They are used to boost one’s credibility on Twitter. The tokens are free, with users sending them as a sign that they endorse a certain tweet. This exempts them from the strict laws that prohibit the extensive involvement of banks with other cryptos such as Bitcoin Core (BTC) and Ethereum.