JPMorgan blocks YC-backed startups after Venezuela-linked activity
JPMorgan has frozen the accounts of startups developing stablecoins after detecting business activity connected to Venezuela.
The largest U.S. bank, JPMorgan Chase, froze accounts linked to the Y Combinator–backed startups BlindPay and Kontigo.
According to The Information, both companies mainly operate in Latin America and accessed JPMorgan’s banking services through Checkbook, a digital payments company that partners with major financial institutions.
A JPMorgan representative stated that the decision was not related to opposition to stablecoins or their development projects.
“It has nothing to do with companies issuing stablecoins… We serve both stablecoin issuers and related firms, and we recently helped a stablecoin issuer go public,” the spokesperson told The Information.
In reality, the freeze was linked to JPMorgan identifying business activity tied to Venezuela and other locations under U.S. sanctions.
Sanctions becoming increasingly strict
According to Checkbook CEO P.J. Gupta, BlindPay and Kontigo were among several firms associated with a sharp surge in payment returns, which prompted the bank to close the accounts. The spike was reportedly driven by rapid customer growth.
The account freezes come amid deepening cooperation between JPMorgan and Checkbook. In November 2024, the two companies announced that Checkbook would join the J.P. Morgan Payments Partner Network, enabling corporate clients to send digital checks. Earlier in 2024, Checkbook also expanded its B2B payments offerings, targeting sectors such as legal services, government, and banking.
Meanwhile, cryptocurrencies are becoming increasingly popular in Venezuela, as citizens turn to digital assets to protect themselves from currency collapse and tightening state control.
Cointelegraph reports that it has reached out to JPMorgan for comment but had received no response by the time of publication.
As we wrote, JPMorgan debuts Ethereum-based money market fund for institutions
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