JPMorgan freezes accounts of several stablecoin startups operating in high-risk countries

DeepFlowTech · 2025-12-27T03:08:43+00:00

JPMorgan recently froze the accounts of two rapidly growing stablecoin startups, Blindpay and Kontigo, due to potential legal risks associated with their operations in high-risk countries like Venezuela. Although the bank stated that the freeze was unrelated to the stablecoin companies, it still highlights the risks cryptocurrencies pose to banks.

DeepFlowTech

2025-12-27 03:08:43

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Deep Tide TechFlow News, December 27th, according to The Information, in recent months, JPMorgan Chase has frozen accounts used by at least two rapidly growing stablecoin startups operating in high-risk countries such as Venezuela. The bank’s actions highlight the risks that cryptocurrency transactions pose to banks, as they must understand their business partners and sources of funds.

JPMorgan Chase has frozen the accounts of two startups, Blindpay and Kontigo, both of which are backed by venture capital firm Y Combinator and primarily focus on the Latin American market. These companies have established connections with JPMorgan Chase through digital payment company Checkbook.

These startups operate in Venezuela and other regions, which pose legal risks to JPMorgan Chase due to sanctions or other restrictions.

JPMorgan Chase stated that the freezing of these stablecoin companies’ accounts was not due to the nature of their business. “This has nothing to do with stablecoin companies,” a bank spokesperson said. “We provide banking services to stablecoin issuers as well as to businesses related to stablecoins, and we recently facilitated a stablecoin issuer’s IPO.” Aside from that, the bank declined to comment further on the matter.

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