Custodia Bank, a Wyoming-based financial institution serving crypto businesses, recently underwent a major restructuring, including the layoff of nine of its 36 employees. The move comes as the bank faces increased scrutiny from the Biden administration, particularly in its pursuit of a master account with the Federal Reserve. Without that account, Custodia will have to rely on intermediaries for transactions, resulting in higher costs.
The layoffs are attributed to what Custodia Bank describes as “Operation Chokepoint 2.0,” a perceived government effort to isolate the crypto industry from the broader financial system. The bank remains focused on addressing these challenges while continuing to serve businesses that are struggling to find financial services elsewhere.
