Javier Hernandez Bank of America Under Investigation Following Allegations of Account Closure Linked to Bitcoin Transactions
Bank of America is facing scrutiny after a Coinbase user claimed that the bank closed his account due to his involvement in Bitcoin transactions. Brian Armstrong, the CEO of Coinbase, promptly responded to the issue by seeking input from other users who might have encountered similar problems with Bank of America.
Coinbase CEO Expresses Concern over Bank of America’s Account Closures
Bank of America (BOFA) came under scrutiny on Wednesday when Muneeb Ali, co-founder of Stacks, a platform for Bitcoin smart contracts, took to Twitter to reveal that the bank unexpectedly closed his bank account, which he had been using for 15 years, without providing any explanation. Ali strongly suspects that the closure was a result of his use of the account for Bitcoin transactions through Coinbase. In a tweet, he expressed his belief that this was an attack on Bitcoin and the broader cryptocurrency industry.
Coinbase CEO Brian Armstrong acknowledged Ali’s tweet and inquired whether other Bank of America customers had faced similar issues. He stated, “If so, not ok,” and conducted a Twitter poll to gauge the extent of the problem. The poll received 16,701 votes, with 8.9% confirming account closures and 19.3% reporting no such incidents.
Numerous individuals responded to Armstrong’s poll, sharing their personal experiences. While some stated they hadn’t encountered any issues, a notable portion revealed that Bank of America had closed or suspended their accounts following Bitcoin transactions.
One Twitter user suggested, “BOFA and Chase probably see BTC as an existential threat so they want to shadow ban/block the onramp and offramps to exchanges.” Another user mentioned, “They’ve never closed my account over Coinbase transactions, but in the past, they would frequently call me, tell me my account activity looked suspicious, and inquire about my business with Coinbase.” Another individual recounted their struggles with other banks, stating, “Both 5th/3rd Bank and Capital One have rejected deposits or sales with Coinbase. I eventually managed to arrange ongoing deposits, but they don’t make it easy. They claimed they were ‘protecting’ me.”
This week, Bank of America faced separate action from the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) for various violations, including illegal fees, withholding credit card rewards, and opening fraudulent accounts. The bank has been ordered to pay over $100 million to affected consumers and $150 million in penalties to the regulatory agencies.
Do you believe that Bank of America or other banks discriminate against cryptocurrency users? Share your thoughts in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Bank of America, Coinbase, scrutiny, account closure, Bitcoin transactions, CEO, user input
What is the allegation against Bank of America regarding Coinbase users?
A Coinbase user claimed that Bank of America closed his account over Bitcoin transactions.
How did Coinbase CEO respond to the allegation?
Coinbase CEO Brian Armstrong addressed the issue by seeking input from other users who might have encountered similar problems with Bank of America.
What concerns were raised by the Coinbase CEO?
The CEO expressed concerns over potential discriminatory practices and account closures targeting cryptocurrency users, specifically involving Bank of America.
Did other Bank of America customers report similar issues?
According to a Twitter poll conducted by the Coinbase CEO, a small percentage of respondents confirmed experiencing account closures, while a larger percentage reported no such incidents.
Is there any indication of discrimination against cryptocurrency users by Bank of America or other banks?
While some users shared their negative experiences, it is unclear if these incidents are indicative of discrimination against cryptocurrency users as a whole.
What regulatory actions have been taken against Bank of America?
This week, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) took action against Bank of America for various violations, resulting in monetary penalties and requirements to compensate affected consumers.
Users can express their thoughts and experiences in the comments section below the text.
More about Bank of America, Coinbase, scrutiny, account closure, Bitcoin transactions, CEO, user input
- Bank of America
- Coinbase
- Twitter – Muneeb Ali’s Tweet
- Twitter – Brian Armstrong’s Tweet
- Consumer Financial Protection Bureau (CFPB)
- Office of the Comptroller of the Currency (OCC)
5 comments
wow bank of america really closed an account just cuz of bitcoin? that’s not cool, man. ceo of coinbase asking if others had the same issue, hope they find out what’s going on!
Can’t believe some banks are still scared of bitcoin. wake up, it’s the future! bank of america needs to get with the times or get left behind. #cryptorevolution
This just shows how threatened traditional banks are by cryptocurrencies. they can’t control it, so they try to shut it down. sorry BOFA, but we’re here to stay. #decentralize
I’ve been with bank of america for years, but this makes me think twice. if they’re gonna discriminate against crypto users, maybe it’s time to find a crypto-friendly bank. #byeBOFA
Bank of America thinks they can mess with us crypto users? not on my watch! they better fix this or face the consequences. #cryptostrong