- ConsenSys faced two bank account closures under “Operation Chokepoint 2.0,” driven by U.S. regulators’ pressure on financial institutions handling crypto businesses.
- To maintain operations, MetaMask relies on backup accounts, while ConsenSys continues decentralization efforts through the Linea Association and an upcoming governance token.
ConsenSys is once again facing pressure from the banking world, with the company having its bank accounts closed twice in a scheme called “Operation Chokepoint 2.0.” Most recently, purportedly Wells Fargo, a big bank, shuttered its accounts under pressure from American financial authorities.
Consensys has been hit twice by Operation Chokepoint and had its bank accounts cancelled, the most recent case involving Wells Fargo. Consensys' MetaMask relies on additional backup accounts to maintain operations, and Lubin himself has become a target of attack.…
— Wu Blockchain (@WuBlockchain) February 7, 2025
MetaMask Survives, Banks Back Down
Ironically, the banks closing the accounts first aimed to postpone the decision. But official pressure from agencies like the Federal Deposit Insurance Corporation (FDIC) left them with little option. MetaMask—ConsenSys’s core product—was forced to rely on backup accounts to remain functional while their main accounts froze.
Under all of this, ConsenSys CEO Joseph Lubin was also under focus. Not only was the firm under strain, but the primary man behind it was also being impacted.
Operation Chokepoint 2.0: An Attack on Crypto?
For crypto players, Operation Chokepoint 2.0 is nothing new. This is a continuation of the US government’s past policy meant to restrict access to financial services for companies judged dangerous. The crypto business is the major focus only now.
ConsenSys is not the only one under pressure here. Many of the big players in the crypto space have also mentioned that they are having similar difficulties, where banks are unwilling to enable their transactions or even terminate their accounts abruptly.
Fascinatingly, the bank closing ConsenSys’ account got in touch once the US presidential election results were revealed in November. This action begs several questions: Is this policy only political? Alternatively, may there be further undiscovered factors?
Regulatory Crisis and Its Impact on the Crypto Industry
Conversely, the main cause of the tough decisions crypto businesses have to make is regulatory difficulties. In October 2024, ConsenSys announced it was letting go of about 162 employees, roughly 20% of its workforce.
Their principal justification for this choice was regulatory pressure and dubious macroeconomic conditions. Lack of clear legal certainty forces crypto firms to keep adjusting to sometimes shifting and unpredictable policies.
New Directions: Plans for Linea Association and Governance Token
Still, this does not mean ConsenSys is simply living without innovation. CNF previously reported that they formed the Linea Association to assist with the decentralized governance of their Layer-2 zkEVM system.
By early 2025, the association will roll out a governance token, letting the community take part in managing the protocol. Even with regulatory hurdles, ConsenSys is finding ways to keep its place in the decentralized world.
The Future of ConsenSys: Between Threats and Opportunities
If one thing is certain, the crypto space has never been immune from fast-shifting dynamics. From regulatory pressures and financial disconnects to decentralization projects, all of this reflects how the sector keeps changing and adjusting.
Although Lubin and his group might be having great difficulties right now, they might still survive—and maybe come out on top from this battle—with the correct plan. As has happened before, decentralization and creativity can be the main weapons against outside pressure.
