Custodia Bank CEO Criticizes D.C. Policymakers Over Misguided Crackdown

The Founder and Chief Executive Officer (CEO) of Custodia Bank Caitlin Long has come to criticize the Washington DC government authorities for turning a deaf ear to her warnings about potential fraudulent cryptocurrency organizations. CEO Long explained that even before many crypto firms became insolvent and bankrupt last year, she warned the government of the impending dangers of fraud.

Instead of taking caution, she was ignored by government agencies, and her organization was alienated as a result.

According to a blog post by Caitlin Long titled ‘Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle’, the digital asset banking chief explained all the effort she made to get the region’s regulators to be on their watch.

“Today, I’m publicly disclosing for the first time that (1) I handed over evidence to law enforcement of probable crimes committed by a big crypto fraud, starting months before that company imploded and stuck its millions of customers with losses,” she said, noting that she also, “warned bank regulators of the mounting bank-run risk inside the banks serving the crypto industry before the bank runs ultimately hit.”

Policymakers Alienate Integrity Crypto Innovators

Long claimed that while she is vested in notifying the appropriate watchdogs about the worst of crypto through Custodia Bank and at the same time, developing a “lawful, compliant alternative that relegates scams to the trash heap,” the authorities on the other hand are more interested in suppressing the high integrity innovators.  

Speaking of her digital asset custody firm, she said “Custodia was simultaneously attacked by the White House, the Federal Reserve Board of Governors, the Kansas City Fed, and Senator Dick Durbin (who conflated our non-leveraged, 100-percent liquid and solvent bank with FTX in a Senate floor speech),”

Recently, the United States Federal Reserve denied Custodia Bank’s proposal to join its ranks. At the time, a failure to implement core rank provision was presented as the reason behind the rejection. However, Long mentioned the decision of the Fed in her argument, further emphasizing the amount of negativity that her company has faced in recent times.

Based on her judgment, Washington is just playing ‘misguided crackdown’ at this time and she likened it to whack-a-mole that pops up in unexpected locations.