JPMorgan Freezes Accounts of Stablecoin Startups Due to Sanctions Risks
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 27 2025- Account Freezes: JPMorgan has frozen accounts linked to two stablecoin startups, BlindPay and Kontigo, primarily due to concerns over business activities in sanctioned regions like Venezuela, highlighting the complexities of the regulatory landscape surrounding digital assets.
- Risk Management: Checkbook CEO PJ Gupta noted that the account closures were partly driven by a surge in chargebacks resulting from rapid customer onboarding, which raised red flags for JPMorgan's risk management teams, indicating the bank's strong focus on compliance.
- Deepening Partnership: JPMorgan's partnership with Checkbook has strengthened, as Checkbook will join the J.P. Morgan Payments Partner Network, enabling corporate clients to send digital checks and streamlining B2B transactions across various sectors, thereby enhancing efficiency in the digital payments ecosystem.
- Industry Tensions: Amid a broader trend towards cryptocurrency adoption, JPMorgan's cautious stance signals ongoing tensions between traditional banking giants and innovative crypto platforms, especially in light of increasing regulatory scrutiny, showcasing the conflict between fintech and traditional finance.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
