After 25 years of being a customer with CitiBank, Brad Garlinghouse, Ripple’s CEO, revealed that his personal banking relationship with Citigroup was terminated due to his involvement in the cryptocurrency sector.
Backing its action, CitiBank explained that Garlinghouse is “a notable person in crypto, and having notable people in crypto, and banking the crypto industry means more scrutiny from federal regulators.”
Ripple’s Brad Garlinghouse Has Been Debanked From Citibank Due To His Crypto Ties
On Wednesday, October 23, Ripple’s CEO Brad Garlinghouse, while speaking at DC Fintech Week in Washington, explained that he has been cut off from CitiBank’s conglomerate because he is a notable figure in the cryptocurrency industry.
Officials of Citibank explained that this step is necessary to avoid regulatory scrutiny. According to the bank, Garlinghouse is,
A notable person in crypto, and having notable people in crypto, and banking the crypto industry means more scrutiny from federal regulators.
25 Years of Banking Service Gone
Garlinghouse revealed that he has been a good customer with CitiBank for 25 years. Notwithstanding the long years of his banking relationship, the bank ended his personal banking relationship because of his role in crypto.
In the interview, Garlinghouse added that he lost more than his personal banking relationship; he also lost his bank account. He mentioned that he recalled receiving a sudden five-day notice from the bank to move his money from his account, which had been in good standing for over 20 years.
According to him, “They said, ‘You have five days to move your money.”
Is This A New Version Of Operation Chokepoint?
Operation Chokepoint was launched in 2013 by the US Department of Justice (DOJ) to target banks that did business with companies suspected of fraud and money laundering.
However, many crypto enthusiasts have argued that the government has revived a similar initiative, dubbed Operation Chokepoint 2.0, to crack down on the crypto industry by forcing banks to sever ties with crypto businesses.
Although the Biden administration has denied such claims, the recent occurrence between Citibank and Garlinghouse suggests otherwise.
Is This Move Borne Out Of Garlinghouse’s Criticism of Biden Administration’s Crypto Policies
Amid the ongoing Ripple-SEC lawsuit, where the SEC slammed a $125M fine on Ripple as a civil penalty, the Ripple CEO criticized the way President Joe Biden’s administration is handling crypto regulation.
Garlinghouse described SEC Chair Gary Gensler’s tenure as a “reign of terror.” He further accused the US Treasury Department and the Office of the Comptroller of the Currency (OCC) of adopting a “hostile” stance toward the crypto sector.
All of these could have directly or indirectly led to the reason why he was bebanked by Citigroup.
Notwithstanding, Garlinghouse said, “No matter what happens, we’re going to see a reset.”
Earlier last month, he revealed that Ripple would soon launch a USD-pegged stablecoin, and the XRP Ledger would become more programmable by 2025.
Also, Garlinghouse mentioned during the interview that an XRP exchange-traded fund (ETF) is “inevitable.”
