- Consensys faced two debanking attempts under Operation Chokepoint 2.0, surviving both.
- Wells Fargo resisted intense pressure from regulators to close ConsenSys’ accounts.
- Consensys used backup accounts to ensure operational continuity during debanking events.
The U.S. government’s Operation Chokepoint 2.0 has caused substantial financial troubles for Consensys, a major software development firm and MetaMask creator. CEO Joe Lubin disclosed that Consensys had been hit twice by attempts to debank crypto-related operations, most recently an incident involving a major U.S. bank. The bank put up resistance against government demands before consenting to shut down ConsenSys’s company account.
Bank Pressures to Close ConsenSys Account
The unnamed bank, which turned out to be Wells Fargo, received heavy pressure from the Federal Deposit Insurance Corporation (FDIC) and other regulatory bodies to cut its ties with Consensys. The bank officially delayed the account shutdown because the institution maintained a multi-billion-dollar business relationship with the $7 billion company. The bank insisted on maintaining their partnership by informing Consensys through representatives they would extend the possible closure delay.
American governmental pressure became too overwhelming for the bank to handle, forcing them to cave in and terminate Consensys bank account. Operation Chokepoint targeted cryptocurrency companies again, forcing Consensys Labs to lose its banking services through the government initiative.
Redundant Accounts: Overcoming Financial Pressure
During this difficult time, Consensys protected its operations by creating backup account alternatives for critical functions. The company implemented redundant backup accounts, which protected its important business functions despite outside interference. Operations at Consensys faced intense regulatory pressure, and Lubin specifically reported that the government authorities also targeted him personally. Current regulatory attention toward crypto businesses revealed operational difficulties while demonstrating the value of being ready when confronted by these challenges.
Related: U.S. Lawmakers to Hold Hearing on Crypto Rules and Innovation
Rebuilding Bank Relationship Post-Political Changes
The 2024 U.S. presidential election outcome brought a surprising change to the existing circumstances. When Donald Trump won the U.S. presidency, Wells Fargo extended their overtures to Consensys to restore the business partnership. Following the presidential election, Wells Fargo’s relationship manager contacted Consensys’ chief financial officer to establish new business ties through a proposed NBA game invitation. The recent outreach by Wells Fargo signaled a change in their approach, which might stem from modifications in regulatory policies.
