{"id":415288,"date":"2025-12-27T13:38:33","date_gmt":"2025-12-27T08:08:33","guid":{"rendered":"https:\/\/dripp.zone\/news\/jpmorgan-freezes-stablecoin-startup-accounts-over-sanctions-crypto-news\/"},"modified":"2025-12-27T14:13:56","modified_gmt":"2025-12-27T08:43:56","slug":"jpmorgan-freezes-stablecoin-startup-accounts-over-sanctions-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/jpmorgan-freezes-stablecoin-startup-accounts-over-sanctions-crypto-news\/","title":{"rendered":"JPMorgan Freezes Stablecoin Startup Accounts Over Sanctions – Crypto News"},"content":{"rendered":"
\n

JPMorgan Chase has reportedly frozen bank accounts linked to two venture-backed stablecoin startups after identifying exposure to sanctioned and high-risk jurisdictions.<\/p>\n

The accounts belonged to BlindPay and Kontigo, two stablecoin startups backed by Y Combinator that primarily operate across Latin America, according<\/a> to a report by The Information. Both companies accessed JPMorgan\u2019s banking services through Checkbook, a digital payments firm that partners with large financial institutions. <\/p>\n

Per the report, the freezes occurred after JPMorgan flagged business activity tied to Venezuela and other locations subject to US sanctions.<\/p>\n

A spokesperson for JPMorgan reportedly said the decision was not driven by opposition to stablecoins themselves. \u201cThis has nothing to do with stablecoin companies,\u201d the spokesperson told The Information. \u201cWe bank both stablecoin issuers and stablecoin-related businesses, and we recently took a stablecoin issuer public,\u201d the spokesperson added. <\/p>\n

Related: <\/strong><\/em>Strike CEO debanked by JPMorgan, Lummis sounds \u2018Chokepoint 2.0\u2019 alarm<\/strong><\/em><\/a><\/p>\n

Chargeback surge triggers JPMorgan account closures<\/h2>\n

Checkbook CEO PJ Gupta reportedly told The Information that BlindPay and Kontigo were among several firms linked to a surge in chargebacks that prompted the bank to close accounts. According to Gupta, the spike was driven by rapid customer onboarding. \u201cThey opened the floodgates and a bunch of people came in over the internet,\u201d he said.<\/p>\n

The account freezes come as JPMorgan and Checkbook deepen their partnership. In November 2024, the two companies announced<\/a> that Checkbook would join the J.P. Morgan Payments Partner Network, enabling corporate clients to send digital checks. Checkbook also expanded its B2B payment offerings earlier in 2024, targeting sectors such as legal services, government and banking.<\/p>\n

As Cointelegraph reported, cryptocurrencies are becoming a core part of the economy in Venezuela<\/a> as citizens turn to digital assets to shield themselves from a collapsing currency and tighter government controls.<\/p>\n

Cointelegraph reached out to JPMorgan for comment, but had not received a response by publication.<\/p>\n

Related: <\/strong><\/em>JPMorgan exploring crypto-backed loans amid stablecoin push<\/strong><\/em><\/a><\/p>\n

Winklevoss accuses JPMorgan of retaliating against Gemini over criticism<\/h2>\n

In July, Gemini co-founder Tyler Winklevoss claimed JPMorgan Chase paused the crypto exchange\u2019s re-onboarding<\/a> process in response to his public criticism of the bank\u2019s new data access policy. Winklevoss accused the bank of engaging in anti-competitive behavior that could damage fintech and crypto firms.<\/p>\n