Bank of America’s Alleged Account Freezing: Coinbase CEO Offers Response

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Following the recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against major crypto players Binance and Coinbase, banking institutions have grown cautious about engaging with these firms.

Coinbase CEO Brian Armstrong has taken to Twitter, launching a poll to investigate whether Bank of America is closing accounts associated with transactions on the exchange. Armstrong’s query, posted on July 12 and directed at Bank of America, expressed curiosity about the matter.

Has @BankofAmerica closed your account due to transactions with @coinbase? Curious if this is the issue.

— Brian Armstrong (@brian_armstrong) July 13, 2023

Armstrong’s poll is receiving continuous responses

This action by Armstrong was prompted by Muneeb Ali, co-founder of blockchain firm Stacks, who claimed that his personal bank account was closed after 15 years. Ali attributed the closure to his use of the account for Bitcoin transactions with Coinbase, though no explanation was provided.

The poll has received over 8,500 responses thus far. Approximately 9% of respondents answered “yes,” indicating that their accounts were closed due to transactions involving the largest U.S. crypto exchange. In contrast, around 20% responded “no.”

Banks worldwide have grown more uncertain about the crypto industry due to significant value fluctuations, instances of digital asset failures, and stricter regulatory measures.

Investors holding Coinbase stock have experienced a fruitful week. On July 11, the stock price of Coinbase (COIN) surged by a remarkable 16%, surpassing $91.

Over the past month, the COIN stock has demonstrated impressive growth, increasing by an astonishing 65% despite the SEC’s lawsuit against the exchange in early June. Within this period, the COIN stock price has rallied from $50 to over $85.