David Schwartz of Ripple Complains Union Bank Closed All Accounts Without Notifying Until After the Fact
David Schwartz, the Chief Technology Officer (CTO) of Ripple, explained that MUFG Union Bank closed his accounts without informing him about it before. This is something that happened to many other individuals in the crypto space and that have been dealing with digital assets.
Union Bank Closes David Schwartz's Accounts
On May 2nd, Ran NeuNer, the host of CNBC Africa’s Crypto Trader show, explained that his bank contacted him due to the crypto-related transactions made from his account. This is why he would have to explain to a bank representative what means crypto and how it works.
The compliance department at my bank has asked for a call to discuss my Crypto related deposits/withdrawals-It’s as if I have engaged in criminal activity by buying Crypto. So for 2 hours today I will have to explain to a narrow minded idiot that buying Crypto is actually legal.
— Ran NeuNer (@cryptomanran) May 2, 2019
Ripple’s CTO wrote to Ran NeuNer saying that he experienced a similar situation. Schwartz said that he recommends never doing crypto-related transactions from primary bank accounts. It can be a real problem to have all the accounts blocked to pay for bills and other things without any previous warning. Mr. Schwartz is just one of many cases in the crypto market that experienced a similar situation.
I strongly recommend never doing any crypto related transactions from your primary bank. Having your main account that you pay bills from randomly closed on you is very annoying. You're lucky they're talking to you. Union Bank just closed all my accounts and told me later.
— David Schwartz (@JoelKatz) May 2, 2019
In another tweet, he commented that they may not inform users about this decision at all. He explained that they didn’t even say to him that they were going to close this account.
A Wells Fargo client since 1997 claimed that the bank closed his $1,400 savings account without informing him about this decision. The financial institution claims that the decision to close this account was due to the fact that there was a long period of inactivity for the user. This client lost not only his savings but also the interest on these $1,400 that he stored in 1997.
Had $1400 sitting in a savings account with WellsFargo since ‘97. Forgot about it til now. They told me they dont have it. They closed it after 2yr inactivity. They told me the state has it. Called the state, they don’t have it. @APompliano Long Bitcoin Short Bankers
— Benjamin Wolf (@BenWolf369) February 27, 2019
At the same time, Peter McCormack, the host of the podcast called “What Bitcoin Did,” explained that when he was trying to open a bank account in the United Kingdom for his podcast, he was rejected by 6 different retail banks. These institutions were Metro, Lloyds, Barclays, Revolut, and NatWes. Thus, operating a business that uses Bitcoin became a challenge for many individuals and firms.
Larger companies located in Malta and Switzerland have also been experiencing similar situations. Banks were reluctant to offering services to crypto-related firms or companies dealing with digital assets. This is why the governments of these two countries requested financial institutions to accept firms working with cryptos.