The Biden administration’s regulatory crackdown on cryptocurrency has caused a significant restructuring at a small, but high-profile crypto bank. FOX Business has learned that Custodia Bank, a Wyoming financial institution that offers banking services to crypto companies, informed staff Thursday morning that it will lay off nine of its 36 employees in an effort to preserve capital as it battles the nation's central bank in court.
Regulators such as Deputy Treasury Secretary Wally Adeyemo have said as recently as three weeks ago that there is no coordinated effort by the government to shut out the crypto industry from the broader financial system. However, industry participants have taken to social media to post receipts and describe their experiences with banks terminating their personal accounts apparently due to their interactions with crypto.