Cardano Founder emphasized the operation’s strategy of targeting crypto businesses worldwide through fines, audits, service denials, and harassment.
Charles Hoskinson, the founder of Cardano, has commented regarding Operation Chokepoint 2.0, describing it as a global and highly targeted attack on the cryptocurrency industry.
Cardano founder stated that the repercussions have caused long-term financial and psychological damages, and he urged the industry to unite and advocate for new regulations to prevent such activities in the future.
Cardano Founder Stance on Operation Chokepoint 2.0
In a social media post on X (formerly known as Twitter), Charles Hoskinson, the founder of Cardano, expressed his concerns about the worldwide implications of Operation Chokepoint 2.0.
According to him, the effort is a methodical procedure that involves harassing, fining, auditing, and refusing services to businesses that deal in cryptocurrencies all over the world. These comments align with pro-crypto lawyer John Deaton’s belief that the Trump administration should investigate Operation Chokepoint 2.0.
He claimed that the operation extended beyond the borders of the United States, which prompted the financial institutions to take action to debank cryptocurrency businesses out of concern that they would lose their correspondent agreements with American banks.
In addition, Cardano founder brought out the ramifications that this has for businesses and individuals operating within the cryptocurrency industry, both in terms of the financial and emotional anguish that they would experience.
He advised businesses to capitalize on the current situation to promote legislation banning such activities. He wrote, highlighting the importance of working together to find a solution, that “we have a small window of time to get a law passed.”
Industry Leaders Speak Out on Debanking Crisis
As many people in the sector have expressed their disapproval of Operation Chokepoint 2.0, the comments made by Charles Hoskinson, the founder of Cardano, are reflective of their thoughts.
Gabriel Abed, a Barbados-based entrepreneur, recounted his encounter with First Citizens Caribbean Bank, which terminated his account upon receiving a Bitcoin-related deposit from Kraken.
He stated that the bank had canceled his account because the bank had issues regarding the U.S. correspondent relationships, despite the fact that he had been banking with them for a period of ten years. Faryar Shirzad, the Chief Policy Officer of Coinbase, used Nic Carter’s research to provide comparable examples of other industry participants.
Shirzad has emphasized the importance of increasing the level of public disclosure and the rule of law in relation to the acts of government agencies of this nature. He also emphasized the significance of maintaining oversight of the financial institutions in order to prevent the occurrence of campaigns that are politically motivated in the future.
Ripple CTO and Others Condemn Indirect Regulation
In addition, David Schwartz, Chief Technology Officer of Ripple, participated in the conversation and offered his perspective on debanking as a kind of indirect regulation. Schwartz asserts that these measures constitute a violation of fundamental legal principles, including the right to freedom of speech, the right to due process, and the prohibition against unlawful searches.
He urged the government to address the issue in a way that is both legal and transparent, stating, “It is easier to force banks to stop doing business with undesirable clients than it is to make this business illegal. “Numerous well-known figures in the technology industry have also reported instances of debanking.
JPMorgan Chase debanked Sam Kazemian, the creator of Frax Finance, in the latter half of 2022, while Brian Armstrong, the CEO of Coinbase, has submitted Freedom of Information Act requests to delve deeper into the extent of government involvement.
Armstrong referred to the campaign as “unethical” and asserted that prominent figures such as Senator Elizabeth Warren and State Securities and Exchange Commission Chairman Gary Gensler played a significant role in the initiative.
