- The Biden regime reportedly banned DeFi founders from working in crypto again.
- A crypto VC urged the U.S. Congress to call the victims to testify.
The Biden-era Security and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) allegedly instructed several DeFi founders to never work in crypto again.
This grim angle was never covered during crypto debanking or ‘Operation ChokePoint 2.0,’ because founders were forced to sign an NDC [non-disparagement clause].
Joey Krug, crypto VC partner at Founders Fund, revealed this during the ETH Denver conference.
He said,
“The government went to DeFi founders and told them: you have to do a settlement with us, and in many cases sign a thing that said you’ll never work in crypto again.”
Krug added that the founders signed a non-disparagement clause that only allowed them to discuss the issue with Congress.
SEC’s crypto crackdown: Crypto debanking and more
For those unfamiliar, crypto debanking, known as ‘Operation ChokePoint 2.0,’ restricted crypto firms from accessing banking services during Biden’s reign.
Congress is currently probing the extent of the debunking. But the media never reported on firms outrightly banned from the sector.
Krug added that authorities threatened the founders with jail sentences, despite none of them breaking the law, without reference to the Department of Justice (DoJ).
“These agencies [CFTC, SEC] would go to founders and tell them if they disagree with their terms, they would go to jail. They are civil agencies, but none of these matters were referred to the DoJ.’
The VC partner recommended that Congress ask the victims to testify and fire any agency officers involved in the allegations.
That said, Krug was hopeful about the Trump SEC’s different approach to the industry.
The new pro-crypto agency has initiated several regulatory rollbacks on various enforcement actions against crypto firms like Coinbase, Gemini, and Uniswap.
