In summary
- Marc Andreessen accused the Biden administration of reviving “Operation Chokepoint” to financially exclude technology startups, especially in the crypto sector.
- He stated that more than 30 founders have been ousted in recent years without notice or due process.
- Elon Musk and Brian Armstrong joined the debate, calling this practice unconstitutional and suggesting political influences behind the decisions.
What happens when more than 30 tech company founders lose access to banking services without notice? According to Marc Andreessen, this is not an accident, it is a government conspiracy.
Andreessen, co-founder of the venture capital firm Andreessen Horowitz, says the Biden administration is using financial exclusion as a weapon in what he calls “Operation Chokepoint 2.0.”
Speaking on The Joe Rogan Experience podcast last Tuesday, Andreessen revealed: “Over 30 founders have been ousted in the last four years,” calling the practice a direct attack on legal businesses.
The term Operation Chokepoint has its origins in an Obama-era program that cut off financial services to industries considered controversial or high risk, such as marijuana dispensaries and gun stores.
Andreessen accused the Biden administration of reviving and expanding this strategy to attack political opponents and disfavored tech startups, particularly in the crypto industry.
“Operation Chokepoint 1.0 was 15 years ago against marijuana and guns,” he explained. “Chokepoint 2.0 is mainly against its political enemies and unwelcome tech startups.”
Crypto startups, according to Andreessen, now face similar exclusionary practices, being deprived of banking services, payment processors and even insurance, which cripples their ability to operate.
Tesla CEO and X founder Elon Musk amplified the issue, retweeting a clip from the podcast: “Did you know 30 tech founders were secretly ousted?” he said.
The tweet sparked a widespread rebuke, with Brian Armstrong, CEO of Coinbase, calling it “one of the most unethical and unconstitutional things to happen in the Biden administration,” he wrote on X on Wednesday.
“My intuition is that we will find Elizabeth Warren’s footprint everywhere… The Democratic Party should realize that Warren is a liability and distance themselves even more if they want to have any hope of rebuilding,” Armstrong added.
Debanking refers to the process by which a bank or financial institution revokes or restricts services to a customer, often closing their accounts without providing clear reasons.
“There is no due process. Nothing is in writing. There are no rules,” Andreessen alleged. “There is no court. There is no decision process. There is no appeal. Who do you appeal to? Who do you go to to get your bank account back?”
Caitlin Long, CEO of Custodia Bank, shared the experience of her company being ousted on Wednesday.
“Stay tuned to our pending lawsuit against the Fed. The oral hearing is scheduled for January 21,” Long said.
The issue of debanking is not confined to the US. In September 2023, the UK’s Financial Conduct Authority (FCA) reviewed allegations of politically motivated debanking.
Australia has also been accused of shutting down banking services linked to crypto firms, which apparently began during COVID-19.
While the FCA reported finding no evidence of accounts being closed primarily for political opinions, the findings generated widespread scepticism.
Edited by Sebastian Sinclair
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