09.12.2021

JPMorgan Bank Closes Accounts of Mining Company for Twitter Founder

US banking giant JPMorgan has allegedly blocked all Compass Mining accounts. The latter allows clients to make money on Bitcoin mining through direct investments without having to solve equipment problems.

At the same time, on the eve of Twitter CEO Jack Dorsey, known for his active support of the cryptoindustry, said that he himself is a client of Compass Mining. We tell about what is happening.

The mining company operates according to the following model: its clients choose ASIC miners available for sale and make an investment for placing equipment in one of the Compass Mining centers. The company installs ASICs, after which the client simply pays the electricity costs and receives the mined bitcoins to his wallet. This is convenient if you want to quickly start mining BTC without the extra headache associated with finding and installing devices yourself.

At the same time, another model is more popular in the world – mining pools. Thanks to them, the owners of computing equipment by the type of video cards combine their capacities and together participate in the mining of blocks. You can try your luck in this process using at least one video card on the 2Miners pool, which supports two mining modes, many cryptocurrencies and an interface in different languages.

Today the number of miners on it has reached 75 thousand people.

2miners pool of cryptocurrencies

Mining pool indicators 2Miners

However, in the US, the authorities clearly do not like the idea of ​​active mining of cryptocurrencies. And it ends with the blocking of accounts, which happened the day before.

How they fight cryptocurrencies

Compass Mining CEO Whit Gibbs confirmed the closure of bank accounts with a clear dose of sarcasm on Twitter. Here’s a quote from him posted on Cointelegraph.

Cheers to JPMorgan Chase for closing Compass Mining accounts and contributing to replacing the old guard with sovereign, future-oriented hard money advocates. Get away from Bitcoin and get out of our way.

Bitcoin mining ASIC blockchain

ASIC miners for Bitcoin mining

Gibbs was referring to JPMorgan’s move to highlight the opposition between the traditional financial system and innovation driven by the adoption of Bitcoin and other cryptocurrencies. Although it is worth noting here that this year the American bank has taken several important steps towards the recognition of digital assets. For example, he recently opened access to cryptocurrency investments for some of his high net worth clients.

In another tweet, Gibbs shared details of the incident.

They closed our business account without warning or notice. Moreover, we learned about the situation when one of us entered the office to send the wiring to the seller. It’s just a bad attitude. And that’s why we are engaged in bitcoins.

Recall that Bitcoin and other full-fledged cryptocurrencies save people from the need to interact with intermediaries like the same banks. You can conduct transactions with such digital assets yourself. Crypt holders do not have to wait for someone’s approval to make a transfer – in addition, the latter will not be banal to block.

Just a few days ago, a real VIP appeared on the Compass Mining client list: Twitter CEO Jack Dorsey. He announced this in a tweet in response to a comment from user kitt_andrew, who mentioned the Compass Mining Twitter account.

mining bitcoin dorsey jack

Jack Dorsey’s tweet about Compass Mining

To confirm Dorsey’s words, the company’s official website retweeted his message. True, its representatives declined to answer questions from news journalists about how large the investment of the head of Twitter was.

dorsey jack mining

Retweet messages from Jack Dorsey

So far, neither JPMorgan nor Compass Mining has commented on the aforementioned bank closures. But we can conclude that this event is unlikely to have a too negative impact on the financial activities of the mining company. Excluding the short-term inconvenience, her business will continue to grow amid the current Bitcoin bull run.

At the same time, we believe that this situation once again highlights the disadvantages of decentralization. Obviously, blocking accounts without any notification is a negative practice that will ultimately play against banks. And Bitcoin, along with other cryptocurrencies and decentralized platforms, will also help deprive them of their full power.

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