JPMorgan Halts Accounts Over Stablecoin Risks

• Lyla Velez
• December 27, 2025
• News
• 0 Comments

JPMorgan Chase temporarily froze accounts of stablecoin startups BlindPay and Kontigo amid concerns over U.S. sanctions compliance linked to Venezuela. The affected firms faced scrutiny over their operations in the region.

The freeze reflects heightened attention to regulatory compliance, especially concerning Venezuela. The event underscores the ongoing risks associated with stablecoin operations in regions affected by U.S. sanctions.

JPMorgan Chase’s decision to freeze the accounts emerged from operational risks and U.S. sanctions compliance concerns tied to operations in Venezuela. The involved firms, BlindPay and Kontigo, have not publicly addressed these actions directly. Kontigo reportedly denied inadequate identity checks, according to secondary sources. “The geopolitical climate in Venezuela is a significant concern for financial institutions,” an unnamed industry expert pointed out, highlighting why JPMorgan might have acted decisively.

Venezuela’s geopolitical climate and sanctions are critical factors influencing JPMorgan’s decision. The firms, BlindPay and Kontigo, have seen their activities scrutinized, though no specific financial assets were identified or involved in the reports.

The event fuels debate on the regulatory landscape facing stablecoins, especially in geopolitically sensitive areas. Neither BlindPay nor Kontigo has revealed any changes or responses through official channels, including their social media or websites, reflecting strategic caution.

BlindPay and Kontigo’s halted operations might impact their market position, considering existing compliance standards. While financial specifics remain undisclosed, the incident adds complexity to cryptocurrency firms operating in or with countries under strict U.S. sanctions.

This situation may prompt a reevaluation of operational strategies for similar cryptocurrency businesses. Regulatory adjustments may arise, affecting stablecoins’ standing in different monetary jurisdictions, as firms navigate the uncertainties of international sanction laws.