Reported by By Aoyon Ashraf

Operation Choke Point 2.0,” the alleged coordinated efforts by the Biden administration to cut the cryptocurrency industry off from the U.S. banking sector, is the Securities and Exchange Commission’s “chemotherapy” for a $14 billion “Ponzi cancer,” said Oliver von Landsberg-Sadie, founder and CEO of crypto banking firm BCB Group. He spoke during a panel at CoinDesk’s Consensus 2023conference titled “Crypto Banished From the Banking System.”

It wasn’t clear if Landsberg-Sadie’s comments referred to Bernard Madoff’s infamous Ponzi scheme or the more recent, spectacular collapse of crypto exchange FTX, which was not a Ponzi scheme. However, he does think current efforts by U.S. regulators against crypto entities are hurting legitimate companies, such as Caitlin Long’s Custodia Bank, which has been at odds with regulators. Long was another member of the panel.

The recent crisis sparked by the closing of Silvergate, Signature and Silicon Valley banks has narrowed opportunities for many U.S. crypto companies, pushing them to open bank accounts offshore. This has many in the industry questioning whether they can do business in the country.

Read full report: https://www.coindesk.com/business/2023/04/28/operation-choke-point-20-is-secs-chemotherapy-for-14b-ponzi-problem-bcbs-ceo-says/?outputType=amp