The US Securities and Exchange Commission began investigating Uniswap operations a few months ago, according to reports. Uniswap is the largest decentralized exchange in the world. Now, Uniswap is in the news again as JP Morgan Chase closed down the Uniswap founder’s bank account.
Founder Hayden Adams made this new public on his Twitter account and said that he didn’t have access to his account. This was done without prior warning and he is among many to be targeted in this fashion.
The former chairman of the US Commodity Future Trading Commission Brian Quintenz replied to Adams’ statement “Looks likely to be a shadow de-banking of cryptocurrency”. The Federal Reserve and USOCC bank examiners are working on this issue with direction from the top brass. JP Morgan wouldn’t inform customers if their accounts have been tagged as risky by the examiners.
JP Morgan has closed bank accounts of other crypto investors. Erik Voorhees, an investor, had his credit card account shut down without warning or explanation. Hayden Adams takes this account shutdown personally and is annoyed that others are also being targeted because of their work in the crypto industry.
According to Brian Quintenz, banks are bound by law not to tell customers why their relationships are being terminated. Hayden Adams got a lot of sympathy with other users on this abrupt shutdown. Others have offered the opinion that the right to a bank account is not universal and banks can take decisions that are not always acceptable to the account holder.