2 years ago
Caitlin Long revealed that she had warned authorities agencies of large “fraud” successful the crypto abstraction months earlier respective firms went bankrupt.
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The CEO of Custodia Bank Caitlin Long has slammed regulators and lawmakers successful Washington D.C. for their “misguided crackdown” connected the crypto sector, and besides for ignoring her warnings of large “fraud” allegedly conducted by now-bankrupted entities.
In a Feb. 17 blog post titled “Shame On Washington, DC For Shooting A Messenger Who Warned of Crypto Debacle,” Long tore into the authorities for its attack to crypto regulation, failing to support investors and alienating bully actors successful the space:
“Washington’s misguided crackdown volition lone propulsion risks into the shadows, leaving regulators to play whack-a-mole arsenic the risks continuously popular up successful unexpected places.”Long stressed that with her integer plus custody firm, she’s “been calling retired the worst of crypto portion trying to physique a lawful, compliant alternate that relegates scams to the trash heap. But [...] astir of today’s policymakers look intent connected sidesplitting the high-integrity innovators.”
The Custodia Bank CEO claimed that her efforts to enactment with authorities agencies were yet thrown backmost successful her face, arsenic she recounted the spate of negative run-ins her steadfast has had of late.
“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 slope with FTX successful a Senate level speech),” she said, adding that:
“Custodia tried to go federally regulated – the precise effect bipartisan policymakers assertion to want. Yet Custodia has been denied and present disparaged for daring to travel done the beforehand door.”Her sentiments echo that of figures specified arsenic Coinbase CEO Brian Armstrong, who has suggested connected aggregate occasions that the agencies specified arsenic the Securities and Exchange Commission (SEC) have reacted frostily to his firm’s efforts to support a dialogue successful bully faith.
Earlier this month, Armstrong besides criticized the deficiency of regulatory clarity successful the U.S. and what appears to beryllium a “regulation by enforcement” attack pursuing the SEC’s determination to unopen down Kraken’s staking services connected Feb. 9.
“Today’s regulators and lawmakers successful Washington are nary uncertainty embarrassed that they failed to halt the criminals of crypto. DC is demanding scalps,” Long wrote successful the blog post, adding that:
“Calls for a crackdown contiguous are coming from galore of the aforesaid policymakers who were charmed by the fraudsters. In a 180-degree turn, they’re present throwing the babe retired with the bathwater.”Unheeded warnings
Over connected Twitter, Long besides suggested that good earlier the implosion of respective crypto firms successful 2022, she and galore others had tried to pass Washington and “help instrumentality enforcement stop” large fraud, but to nary avail.
Related: SEC vs. Kraken: A one-off oregon opening salvo successful an battle connected crypto?
Long stated that she was publically disclosing for the archetypal clip that she had “handed implicit grounds to instrumentality enforcement of probable crimes” committed by an unnamed crypto steadfast “ months earlier that institution imploded and stuck its millions of customers with losses.”
1/ IT'S TIME FOR ME TO REVEAL A FEW THINGS. I've conscionable published a station "Shame On Washington, DC For Shooting A Messenger Who Warned Of #Crypto Debacle." Link to station is here:https://t.co/yTWWrEk3Os pic.twitter.com/rbo21DzOv3
— Caitlin Long ⚡️ (@CaitlinLong_) February 17, 2023Kraken co-founder and CEO Jesse Powell responded to Long’s Twitter thread, and fundamentally corroborated her statements by noting that: “I can't archer you however infuriating it is to person pointed retired monolithic reddish flags and evidently amerciable enactment to regulators lone to person them disregard the issues for years.”
I can't archer you however infuriating it is to person pointed retired monolithic reddish flags and evidently amerciable enactment to regulators lone to person them disregard the issues for years. "They're offshore. It's complicated. We're looking astatine everybody." FOR YEARS. Then to beryllium utilized arsenic their example. https://t.co/YHdNazM2UE
— Jesse Powell (@jespow) February 18, 2023
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