Kraken CEO Is a Chokepoint 2.0 Victim: Lawsuit Reveals Jesse Powell was Denied Housing Over Crypto Ties
Key Takeaways
- Kraken CEO Jesse Powell alleges he was denied housing due to his crypto ties and political views.
- Powell filed a lawsuit in San Francisco, claiming discrimination.
- He is the second major crypto executive to report such treatment, following Ripple CEO Brad Garlinghouse.
Kraken co-founder and CEO Jesse Powell has filed a lawsuit in San Francisco Superior Court, alleging he was denied the purchase of an apartment due to his links to the crypto industry and political beliefs.
Powell’s legal challenge adds fuel to concerns over “Operation Chokepoint 2.0,” the alleged effort to cut off crypto firms and figures from essential financial and business services.
Kraken CEO Sues for Housing Discrimination
Powell’s lawsuit claims that the board of 2500 Steiner Street, a high-end cooperative building, blocked his purchase without valid justification.
According to the filing, Powell believes his rejection stemmed from two factors: his public support for conservative causes and his deep ties to the cryptocurrency industry.
The lawsuit further alleges that 2500 Steiner Street is “well known in political circles as a bastion of San Francisco power Democrats.” Powell, a vocal supporter of Republican policies, argues this political bias played a role in his exclusion.
“I tried everything to avoid filing this lawsuit,” Powell wrote in a post on X . “But I’m tired of condescending, elitist bigots unlawfully discriminating against me.”
Operation Chokepoint 2.0? Crypto Executives Face Roadblocks
Powell is not the first high-profile crypto figure to claim he was denied services due to his industry affiliation. Ripple CEO Brad Garlinghouse previously reported similar obstacles, intensifying speculation that crypto leaders are being systematically targeted.
These allegations tie into broader fears about Operation Chokepoint 2.0—a term used by critics to describe a supposed effort by the Biden administration to restrict access to banking and financial services for crypto businesses.
The original Operation Chokepoint, launched in 2013, pressured banks to cut ties with industries deemed high-risk, such as firearms dealers and payday lenders.
Trump Administration Moves to Dismantle Chokepoint Policies
Rolling back Operation Chokepoint 2.0 was one of Donald Trump’s key campaign promises. Now, just two weeks into his presidency, Republican lawmakers are pushing forward with efforts to investigate the alleged financial blacklisting of crypto firms.
The Senate Banking Committee, led by Sen. Tim Scott (R-S.C.), held a hearing on Feb. 5 to investigate the systemic debanking of crypto companies.
During the proceedings, Acting FDIC Chairman Travis Hill released 175 documents, providing concrete evidence that Operation Chokepoint 2.0 is not just speculation but a reality.
The documents and testimonies presented at the hearing exposed undeniable involvement from the Federal Reserve and some of America’s largest banks in the targeted debanking and discrimination against crypto businesses.
The House Financial Services Committee, chaired by Rep. French Hill (R-Ark.), will hold a similar session on Feb. 6.
Powell’s lawsuit is about more than just securing housing; it’s a test case for whether crypto executives will continue to face barriers in industries far beyond finance.
