Operation Chokepoint 2.0: Crypto Founders Silenced by ‘Secret’ Debanking?

What happens when over 30 tech founders lose access to banking services without warning? According to Marc Andreessen, this is no accident—it’s a government conspiracy.

Andreessen, co-founder of venture capital firm Andreessen Horowitz, claims the Biden administration is using financial exclusion as a weapon in what he terms “Operation Chokepoint 2.0.”

Speaking on The Joe Rogan Experience podcast on Tuesday, Andreessen revealed, “Over 30 founders had been debanked in the last four years,” calling the practice a direct attack on legal businesses.

The term Operation Chokepoint originates from an Obama-era program that cut off financial services to industries deemed controversial or high-risk, such as marijuana dispensaries and gun shops. 

Andreessen accused the Biden administration of reviving and expanding this strategy to target political opponents and disfavored tech startups, particularly in the crypto industry.

“Operation Chokepoint 1.0 was 15 years ago against the pot and the guns,” he explained. “Chokepoint 2.0 is primarily against their political enemies and disfavored tech startups.”

Crypto startups, according to Andreessen, now face similar exclusionary practices, being denied banking services, payment processors, and even insurance—crippling their ability to operate.

Tesla CEO and X founder Elon Musk amplified the issue, quote-tweeting a clip from the podcast: “Did you know that 30 tech founders were secretly debanked?” he said. 

The tweet triggered widespread rebuke, with Coinbase CEO Brian Armstrong touting it as “one of the most unethical and un-American things that happened in the Biden administration,” he wrote on X on Wednesday.

“My guess is we’ll find Elizabeth Warren’s fingerprints all over it … The Democratic party should realize Warren is a liability and further distance themselves if they want to have any hope of rebuilding,” Armstrong said.

Debanking refers to the process of a bank or financial institution revoking or restricting services to a customer, often closing their accounts without providing clear reasons.

“There’s no due process. None of this is written down. There’s no rules,” Andreessen alleged. “There’s no court. There’s no decision process. There’s no appeal. Who do you appeal to? Who do you go to to get your bank account back?”

Custodia Bank CEO Caitlin Long shared her company’s experience of being debanked on Wednesday.

“Yes—debanked repeatedly, in my company’s case,” she tweeted. “Keep an eye on our pending lawsuit against the Fed. Oral argument is scheduled for January 21.”

The issue of debanking isn’t confined to the U.S. In September 2023, the UK’s Financial Conduct Authority (FCA) reviewed claims of politically motivated debanking.

Australia, too, has been accused of shuttering banking services linked to crypto firms, which allegedly began during COVID-19.

While the FCA reported no evidence of accounts being closed primarily due to political views, the findings sparked major skepticism.

Edited by Sebastian Sinclair