JPMorgan Freezes Stablecoin Accounts Tied to Venezuelan Operations, Highlighting Crypto Counterparty Risks (Blindpay Case)

COINOTAG News reports that JPMorgan Chase has frozen accounts linked to at least two rapidly growing stablecoin startups, a development noted by The Information. Several of these ventures operate in higher-risk jurisdictions, including Venezuela, underscoring the regulatory risk banks face when processing crypto transactions. The move highlights the need for stringent counterparty due diligence and clear assessment of the source of funds in cross-border crypto activity.

In one case, the bank froze the account tied to Blindpay, a development that reflects intensified scrutiny of liquidity channels and compliance workflows across crypto rails and traditional banking interfaces.

Industry participants should monitor evolving KYC/AML standards and bolster internal controls to mitigate operational risk and protect financial integrity in crypto settlements.