JPMorgan Blocks Stablecoin Startups Over Sanctions Risks

Published by

Sohrab Khawas

December 27, 2025

JPMorgan Sued Over Alleged $328M Crypto Ponzi Scheme

JPMorgan has frozen accounts of stablecoin startups Blindpay and Kontigo, both backed by Y Combinator, after spotting suspicious activity linked to high-risk regions like Venezuela. The firms, which processed payments through Checkbook, reportedly saw rising chargebacks and weak identity checks. JPMorgan said the move was a compliance measure tied to sanctions rules, not a ban on all crypto clients. Both startups were growing fast in Latin America’s digital payment sector before the freeze.

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Sohrab Khawas

Sohrab is a passionate cryptocurrency news writer with over five years of experience covering the industry. He keeps a keen interest in blockchain technology and its potential to revolutionize finance. Whether he's trading or writing, Sohrab always keeps his finger on the pulse of the crypto world, using his expertise to deliver informative and engaging articles that educate and inspire. When he's not analyzing the markets, Sohrab indulges in his hobbies of graphic design, minimal design or listening to his favorite hip-hop tunes.

Published by

Sohrab Khawas

Tags: Crypto news