It appears that the cryptocurrency crackdown by financial institutions has begun. After months of mixed signals from governments around the world regarding regulations, Lakestone Bank and Trust customer Jordan Spencer took to Facebook to post a letter he received on December 14th threatening to close his account for a policy violation.
What violation, you ask?
According to the letter (pasted below), Spencer has been utilizing the widely popular Coinbase website to make cryptocurrency purchases and deposits tied to his personal bank account. This, says loss prevention officer Louise Vermillion, is a policy violation that needs to be “discontinued immediately.”
The full letter from the bank has been made available below:
The response, according to Spencer, was swift and brutal, with scores of users taking to the bank’s rating page and pummeling it from its previous 3.5 rating score on Facebook to 1.1 in less than seven hours:
Apparently, as is often the case with governments and banks, they’re the only ones that know what YOU should be doing with YOUR OWN MONEY. And they’ll shut down your account if that’s what it takes to make sure you’re protected.
Related: Top Crypto Mining Executive Explains Why “We’re Hoarding The Coins”
Love it when elitist liberals tell me with a condescending pat on the head what I should be doing with the money I’m parking in their pathetic bank.
If i was this guy, I’d immediately pull my funds and stop doing business with them.
????????
Grunty
What the f*ck are you going on about stupid. Banksters are overwhelmingly Koch brother connected Repubs. It’s idiots like you who have us on the brink of nuclear war with NK. Stop voting “R” for the f*ck of it in every election and vote like you have a brain.
He should take that letter to an attorney and file a lawsuit against that bank. Invasion of privacy, abuse of confidence, likely violation of Federal Banking laws ( numerous )and coersion as well as possibly dispensing investment advise without the appropriate government authority to do so.
NOPE
WHEN YOU GET A BACK ACCOUNT YOU SIGN ALL YOUR MONEY OVER TO THE BANK
THE ACCOUNT IS NOTHING MORE THAN AN I O U
READ THE FINE PRINT
Nope. The bank has the right to close your account if you are engaged in money laundering or terror funding or tax evasion. Crypto currencies can be used for these illegal activities.
So can CASH….
I’m sorry, but I’m laughing like hell right now. Seems first the powers in charge said we had to buy something (ACA/Obamacare) or be taxed/penalized. Now, a bunch of lazy morons are trying to out-scam each other and get rich via a digital daydream and now those same powers are cracking down. I swear, there must be something psychedelic in the water or something.
Where do you go when all the banks get around to doing it?
Co-ops?
#10 cans full of $10 bills? 🙂
more like #10 cans with gold and silver…and bullets, alcohol…..
Crypto-currencies are being treated like securities, for legal purposes, btw. This means that he has a plausible excuse, as a speculator. He would presumably report the gains, for tax purposes, if he wants the money to come back through statist banking channels, ever again.
Unimpressed, that b/c has no atm or suchlike.
There are BC ATM’s. Just Google for them.
If I understand it correctly, when you deposit money in a bank, the bank owns the money. They owe you that amount of money. If the bank declares bankruptcy, you are out of luck unless the FDIC bails you out. The FDIC cannot cover all the deposits if a whole lot of banks go bankrupt simultaneously. Of course, the currency is only backed by the full faith and credit of the United States Government. Most Americans have virtually no savings, owe a lot, and have three days of food in their homes. Ever wonder why we prep? Enjoy the holidays anyway!
Brian,
When you deposit your money in a bank it is still your money. The bank does not own it but they now have control of it. If the bank becomes insolvent usually they will be acquired by another bank and your deposits are transferred to the new bank. And the FDIC does not have to cover all of the deposits. It only covers deposits under the insured amount.
Most of my money is NOT in the bank, period. I only keep enough in there to pay 2 particular bills every month and that’s it. Most of my transactions are cash only. I’ve lost count of how many cashiers I piss off when I pull out a wad of bills instead of a card. I’ve got a debit card I use for occasional online shopping but that’s it. Most of my shopping is done at local sources with cash only. I even buy my cars from private owners for cash only. I don’t want to mess around with credit at all. That guy ought to get his money out of the bank ASAP. No bank tells me what the f#$% to do with my money.
USAA… Could care less about my Coinbase account…
Here’s a tip for all you bucketheads…
IOTA… The future…
Suddenly, AND so unexpectedly, Louise Vermillion’s mouth looks like a dirty urinal to me. Did anyone else get that impression ?
The banks should be happy as pigs in shit, those crypto digits will go right back to the account it came out of to begin with which they will create more fraction reserve debt with, simple.
very simple, take a little vacation to Mexico or the Cayman islands, bring your laptop and thumb drive with your Bitcoin account info, take it out there and go around the bank regs entirely then transfer the money back into your USA account, this will also cut them out of any ability (along with the IRS) to freeze or confiscate your account. Or use Bitcoin to buy a refundable round the world plane ticket, then cash it in. Or and I like this one the best, find a credit union that will allow you to use coinbase. Possible a rogue bank will stand up and say Yes we will allow Coinbase. Lakeside bank must have a typical twit running it-
J.M. Bullion takes Bitcoin to by Gold/Silver. Get Eagles, they don’t have a reporting requirement when selling over $10K. Get check from dealer and drop it in the bank. No IRS forms for a check drawn from legit business.
How do I know this? BTDT.
Wait, when selling over $10K or when selling UNDER $10K? I’m confused.
Sorry, if I wasn’t clear. Both actually. I stated it this way because there is a reporting requirement for other forms of PM over $10k. But not Gold and Silver Eagles.
Thank you.
What do u mean by “Get Eagles”? Thank you
So why didn’t explain exactly what the policy violation was? Coinbase is a legal business.
The letter is vague.
If he’s dumb enough to deal with that bank, he gets what he deserves.
Dumbass used his bank.. Green Dot cards work just the same
Hope they seize his assets for being that dumb