Feb 19, 2023

Custodia Bank CEO Slams D.C. for Ignoring Crypto Fraud Warnings

Custodia Bank CEO Caitlin Long has lambasted the authorities in Washington D.C. for their “inadequate” crackdown on the crypto sector and her warnings of major “fraud” allegedly conducted by now-bankrupted entities.

In a Feb. 17 blog post titled, Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle, Long expressed her disappointment with the government’s approach to crypto regulation, pointing out that it has failed to protect investors and has alienated good actors in the space.

“Washington’s inadequate crackdown will only push risks into the shadows, leaving regulators to play whack-a-mole as the risks continuously appear in unexpected places,” she said.

Long has been trying to build a lawful and compliant alternative to scams in the crypto space with Custodia Bank, but she claims that her efforts have been ignored by policymakers.

“Custodia was simultaneously attacked by the White House, the Federal Reserve Board of Governors, the Kansas City Fed and Senator Dick Durbin (who conflated our non-leveraged, 100-percent liquid and solvent bank with FTX in a Senate floor speech),” she said.

The Custodia Bank CEO further added that her attempts to become federally regulated were denied and now disparaged.

Coinbase CEO Brian Armstrong has also criticized the lack of regulatory clarity in the U.S. and the SEC’s “regulation by enforcement” approach following the SEC’s move to shut down Kraken’s staking services on Feb. 9.

Long further revealed on Twitter that she had “handed over evidence to law enforcement of probable crimes” committed by an unnamed crypto firm “months before that company imploded and stuck its millions of customers with losses.”

Kraken co-founder and CEO Jesse Powell corroborated Long’s statements, saying that it was “infuriating” to have pointed out “massive red flags” and illegal activity to regulators only to have them ignore the issues for years.

The Custodia Bank CEO concluded her blog post by noting that calls for a crackdown today are coming from the same policymakers who were charmed by the fraudsters. She suggested that regulators and lawmakers in Washington are now trying to make up for their past mistakes by shooting the messengers.

With the rapid growth of the web3 space, it is becoming increasingly important for the authorities to create a clear and consistent regulatory framework that can protect investors and promote innovation. To that end, Custodia Bank has been offering NFT marketing and promotion services, as well as NFT marketing agency services, to help businesses in the web3 space to sell NFTs and promote their products.

The company also offers Twitter NFT marketing services, helping businesses to leverage the power of social media to reach a wider audience. Custodia Bank is also a web3 agency, providing a range of services to help businesses in the web3 space to succeed in the digital economy.

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