Coin Edition -
- Custodia Bank CEO Caitlin Long has called out American lawmakers and regulators for the crackdown on crypto.
- The CEO claimed that she had warned regulators about the fraud going on at a major crypto firm.
- Long alleged that Custodia Bank faced retaliation from multiple U.S. agencies for its attempt to root out corruption.
Caitlin Long, the founder, and CEO of Custodia Bank have turned up the heat on lawmakers and regulators in Washington D.C. over the ongoing crackdown on the crypto industry. In her blog post titled “Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle”, Long detailed how her warnings to regulators were ignored, ultimately leading to the current predicament of the crypto industry.
The Chief Executive of Custodia Bank, which has made a name for itself in the digital assets banking space, revealed in a lengthy Twitter thread earlier today that she had provided evidence to U.S law enforcement agencies that detailed probable crimes being committed at a certain crypto firm. According to Long, the evidence was handed over months before the firm’s implosion which led to considerable losses to millions of customers.
The CEO further alleged that she had warned banking regulators about an imminent bank-run scenario that would hit the banks catering to crypto firms. Silvergate Bank was among the crypto-facing institutions that were affected by the bank run last month. However, Caitlin Long’s attempts to warn regulators and weed out corruption in the crypto space ended up backfiring on her bank.
As per Long’s blog post, her attempts to call out the lawmakers and regulators on their “misguided crackdown” on crypto, led to retaliation from Washington. Custodia Bank’s application to become federally regulated was shot down. The executive alleged that Custodia Bank became the target of a coordinated attack by the White House, the Federal Reserve Board of Governors, the Kansas City Fed, and Senator Dick Durbin.
I can't tell you how infuriating it is to have pointed out massive red flags and obviously illegal activity to regulators only to have them ignore the issues for years. "They're offshore. It's complicated. We're looking at everybody." FOR YEARS. Then to be used as their example. https://t.co/YHdNazM2UE— Jesse Powell (@jespow) February 18, 2023
Caitlin Long’s struggles with American regulators and lawmakers resonated with Jesse Powell. Powell’s crypto exchange Kraken is one of the latest victims of the regulatory crackdown on crypto. Kraken reached a $30 million settlement with the SEC earlier this month.
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