Biden

The U.S. Securities and Exchange Commission (SEC) allegedly pressured decentralized finance (DeFi) platform founders to leave the crypto industry permanently. According to Joey Krug, a partner at Founders Fund, regulators used enforcement actions to force DeFi founders out of the industry under legal threats.
🚨 SEC Used Settlements as a Tool to Eliminate Crypto Founders
According to Joey Krug, former SEC Chair Gary Gensler and his agency used settlements as a form of coercion. Founders under investigation were given a choice: either settle with the SEC or face prison time.
🛑 What Did the SEC Demand from Founders?
🔹 Sign an agreement stating they would never work in crypto again.
🔹 Maintain secrecy – the deal included a non-disparagement clause, meaning they couldn’t talk about it publicly.
🔹 No room for appeal – if a founder refused, they risked criminal charges.
“In many cases, they also had to sign something that said they could never work in crypto again,” Krug said at the ETHDenver conference on February 27.
💰 Operation Chokepoint 2.0: A Coordinated Attack on Crypto?
Krug’s claims fuel concerns about "Operation Chokepoint 2.0," a theory that the Biden administration is systematically trying to kill the crypto industry.
🔹 Regulatory pressure on banks – government agencies allegedly pushed banks to deny services to crypto firms.
🔹 Aggressive law enforcement actions – DeFi founders were threatened with prison unless they accepted SEC’s terms.
🔹 No referrals to the Department of Justice – despite no proof that these founders broke any laws, the SEC still barred them from working in the industry.
“The government went directly to these founders and told them: Either accept this deal, or you’ll end up in jail,” Krug added.

🔒 Crypto Founders Forced to Sign Confidentiality Agreements
Krug initially didn’t believe such settlements existed, but some founders later showed him their SEC agreements.
“Sure enough, there were clauses stating that they could never work in crypto again [and] they couldn’t talk about it with anyone,” he said.
These gag orders are not new. The SEC has included them in settlements since 1972. The so-called "gag rule" prohibits defendants from criticizing the agency's claims, something Commissioner Hester Peirce has criticized as "undermining regulatory integrity."
The only way these DeFi founders can speak publicly about their settlements is if Congress calls them to testify.
🏛️ U.S. Congress Investigates Crypto “Debanking”
In February, the U.S. House of Representatives and Senate held hearings on the “debanking of crypto.” Lawmakers heard testimony from industry leaders about how they faced regulatory pressure and banking restrictions under the Biden administration.
Additionally, the Federal Deposit Insurance Corporation (FDIC) released nearly 800 pages of internal communications, revealing government efforts to pressure banks into limiting or cutting off services to crypto firms.
🔥 The Future of DeFi: Is This Really the End?
The SEC’s crackdown on crypto raises key questions: Is the government trying to destroy DeFi and cryptocurrencies?
🔹 Regulators claim they’re protecting investors, but their actions look more like an attempt to dismantle the crypto industry.
🔹 DeFi founders faced immense pressure, but if Congress steps in, they may finally be able to speak out.
🔹 Crypto VC investors warn that SEC's approach is harming innovation, while countries like Dubai, Hong Kong, and Singapore are welcoming blockchain companies with open arms.
Will crypto in the U.S. remain under regulatory siege, or will we see a shift in policy?
#SEC , #defi , #CryptoNewss , #CryptoRegulation , #biden

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