Bank of America Account Closures Leaves Banks on Edge, Coinbase CEO Digs for Answers

Following the recent lawsuits by the U.S. Securities and Exchange Commission (SEC) against major crypto players Binance and Coinbase, banking institutions have grown cautious about engaging with these firms. But what prompted Coinbase CEO Brian Armstrong to launch an investigation into the account closures and what does it mean for the future of crypto transactions?

Let’s delve into the details.

Coinbase CEO Launches a Probe

Coinbase CEO Brian Armstrong has taken to Twitter, initiating a poll to investigate whether Bank of America is closing accounts connected to transactions on the exchange. Armstrong’s query, posted on July 12 and directed at Bank of America, expressed his curiosity about the matter.

Armstrong’s Poll is Grabbing Eyeballs

Armstrong’s action was prompted by Muneeb Ali, co-founder of blockchain firm Stacks, who revealed that his personal bank account was unexpectedly closed after 15 years. Ali attributed the closure to his use of the account for Bitcoin transactions with Coinbase, though he received no explanation.

Read More: Coinbase vs SEC Heats Up With Fiery Allegations; Here’s What at Stake

The poll has garnered over 8,500 responses thus far. Approximately 9% of respondents answered “yes,” indicating that their accounts were indeed closed due to transactions involving the largest U.S. crypto exchange. In contrast, around 20% responded “no.”

Coinbase Stock Picks Up

Investors who hold Coinbase stock (COIN) have experienced a prosperous week. On July 11, the stock price of Coinbase surged remarkably by 16%, surpassing $91.

Throughout the past month, the COIN stock has demonstrated impressive growth, soaring by an astonishing 65% despite the SEC’s lawsuit against the exchange in early June. Within this period, the COIN stock price has surged from $50 to over $85.