Bitcoin Fixes This: Former PayPal Exec Has His Bank Account Axed for No Reason

Latest Cryptocurrency News
Mon, 11/18/2019 - 07:20
Alex Dovbnya
Even Roelof Botha, one of the most influential venture capitalists in Silicon Valley, can have his bank account frozen without explanation by banking overlords
Bitcoin Fixes This: Former PayPal Exec Has His Bank Account Axed for No Reason
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Venture capitalist Roelof Botha, the former chief financial officer of PayPal, took to Twitter to reveal that Bank of America suddenly decided to close his account without any explanation. Botha claims that he had been the customer of the aforementioned bank for 20 years. 

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In its letter to Botha, BofA, the second-biggest US bank by assets, only mentioned that they had to cut him off after "a careful review of his banking relations."  

Multiple prominent names within the crypto industry suggested that the only reason for the termination could be Botha buying Bitcoin. Particularly, TechCrunch co-founder Michael Arrington, who also happens to be a huge crypto proponent, says that this is his only guess. 

CivicKey CEO Vinny Lingham and Guardian Circle co-founder Mark Jeffrey were also on the same page.  

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Banks, which see crypto as an existential threat, still have strained relationships with the new asset class.

Moving across the pond, British cycling merchant Scott Snaith had his personal and business bank accounts frozen after making a transaction on a peer-to-peer cryptocurrency exchange. As a result, he didn't have funds to pay his employees.  

Back in August, British banking giant Barclays abruptly ended its partnership with Coinbase back in August 2019 after taking the crypto exchange under its wing in 2018. 

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.