Bank of America Faces Scrutiny After Coinbase User Alleges the Bank Closed His Account Over Bitcoin Transactions

Bank of America has travel nether scrutiny aft a Coinbase idiosyncratic claimed that the slope closed his relationship implicit Bitcoin transactions. Coinbase CEO Brian Armstrong rapidly addressed the issue, asking different users if they person encountered the aforesaid occupation with Bank of America.

Coinbase’s CEO Raises Concerns Over Account Closures astatine Bank of America

Bank of America (BOFA) came nether scrutiny connected Wednesday erstwhile Muneeb Ali, co-founder of Stacks, a Bitcoin furniture for astute contracts, revealed connected Twitter that the slope unexpectedly closed his slope account, which helium had been utilizing for 15 years, without giving a reason. He powerfully suspects that the closure was owed to him utilizing the slope relationship for bitcoin transactions done Coinbase. “This is simply a warfare connected bitcoin & crypto,” helium tweeted.

Coinbase CEO Brian Armstrong responded to the tweet, asking if different Bank of America customers person encountered akin issues. “If so, not ok,” the Coinbase brag tweeted. He subsequently conducted a Twitter poll, inquiring whether Bank of America had closed the accounts of immoderate different individuals owed to their transactions with his crypto exchange. The canvass closed with 16,701 votes, 8.9% of which said yes portion 19.3% said no.

Many radical shared their idiosyncratic experiences successful reply to Armstrong’s poll, with immoderate stating that they hadn’t encountered immoderate issues. However, a notable information revealed that their accounts had been closed oregon suspended by the slope pursuing their Bitcoin transactions.

One Twitter idiosyncratic wrote: “BOFA and Chase astir apt spot BTC arsenic an existential menace truthful they privation to shadiness ban/block the onramp and offramps to exchanges.” Another wrote: “They’ve ne'er closed my relationship implicit Coinbase transactions, but successful the past (especially the twelvemonth starring up to Covid), they would often telephone me, archer maine my relationship enactment looked suspicious, and inquire arsenic to what the quality of my concern with Coinbase was.” A antithetic idiosyncratic detailed: “Both 5th/3rd Bank and Capital One person rejected deposits oregon income with Coinbase. I yet was capable to put for ongoing deposits but they bash not marque it easy. They were ‘protecting’ me.”

This week, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) took enactment against Bank of America for “illegally charging junk fees, withholding recognition paper rewards, and opening fake accounts.” The slope is ordered to wage much than $100 cardinal to harmed consumers and $150 cardinal successful penalties to the 2 agencies.

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