Recently, Compass Mining’s bank account was closed by Chase Bank without any warning. The account had almost 7% of the company’s cash which means it was a high-value account. But the reason for the closure is that Compass Mining is a crypto-related company that mines BTC. The worst part is that the company was not even informed, and they came to know about this once the COO went to the bank to make a transaction. In fact, the COO was so pissed that he put out this tweet.
A big contradiction in statements
For those who don’t know, Chase bank is the retail arm of JPMorgan which means they are directly or indirectly influenced by the firm. But the problem is while JPMorgan talks about how they want to give what clients want (even BTC services), Chase is doing something entirely different. The bank has been known for closing accounts of crypto companies without any warning. They didn’t even overlook individuals using their bank account to avail crypto services. The problem with all this is the fact that the bank is offering crypto services themselves and trying to compete with other exchanges.
Closure of the bank account
Even though Chase closed Compass Mining’s bank account, their authorities didn’t give any comments regarding the same. Compass Mining said that they were just informed 90 days back that their account was being reviewed. No single notice was given to them regarding the account closure. Heck, even any information wasn’t provided after the account was closed.
Talking about the account review, which you might wonder had something to do with the account closure. Well no! According to the company, the reason for the review was to check if their bank account was eligible for an upgrade. In fact, the company’s relationship manager with Chase also told them that it’s nothing serious.
After the closure of the account, the bank was able to gain access to their funds. And now they have successfully shifted everything to another bank Signature. The benefit with them is the crypto-friendly nature and zero chances of the account being closed.
What are your thoughts on Compass Mining’s account being closed without any warning? And do you think that Chase bank is showcasing double standards here? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.