JPMorgan was the US bank that froze the bank accounts of Contigo, a startup that supports users in Venezuela with stablecoins such as USDC. The financial institution was also involved in blocking Brazilian BlindPay accounts, suspending operations in dollars as part of precautionary measures for protection and regulatory compliance.
The measure directly affects Contigo, which provided dollar conversion and management services to users in Venezuela and other Latin American markets. According to sources, the bank Detect transactions that may be related to sanctioned entitiesAs reported by CriptoNoticias, this resulted in the account being suspended.
The move reflects broader trends in the financial sector. Banks strengthen compliance protocols And they distance themselves from crypto customers that are considered high-risk to avoid regulatory repercussions, and move away from the spirit of decentralization.
In this case, JPMorgan flagged transactions that may be related to sanctioned entities, leading to account freezes. The move is in line with pressure from organizations such as the Office of Foreign Assets Control (OFAC).closely monitor financial operations related to digital assets.
Another affected startup, BlindPay, offers a stablecoin pegged to the dollar. Enable cross-border payments from Venezuela. The proposal aims to facilitate fast and low-cost transactions in an environment characterized by financial restrictions. However, the suspension of JPMorgan’s bank accounts is a blow to the company’s operations and the users who rely on its services.
This measure does not target stablecoins
A JPMorgan spokesperson confirmed the move. This is not directed at stablecoin companies. “This has nothing to do with stablecoin companies,” he pointed out. He also emphasized that the bank is working with issuers and associated companies. He even commented that he had recently brought a stablecoin issuer to the public market. However, JPMorgan’s stance on native crypto companies offering stablecoin rewards is well known.
The decision highlights the operational difficulties faced by startups. Without access to dollar bank accounts, projects like Kontigo could suspend some of their services.