ICICI bank has closed down the banking account of Cypherock, a well funded crypto startup that has received even grants from start up accelerators set up by the Indian govt for developing technology products. The company didnt even use the bank account for any crypto trades, but uses it for paying salaries to its staff, for producing supplies etc.
[The entire account balance was drained.](https://preview.redd.it/tdrif4fm8hr61.jpg?width=1188&format=pjpg&auto=webp&s=eb6d171db7f44702ad36fe69329f00baecac8798)
The bank withdrew all the funds in the company’s account and then closed the account, and didnt communicate with the company for over 5 weeks. The company was in the dark as to why they can’t access their own funds.
After many follow ups and in person visits to the bank, the reasons given by ICICI bank are absolutely pathetic.
1. First reason was that the bank found out the company Cypherock is funded by Consensys. Hence, they are guilty by association. Even though the Indian central bank RBI approved the investment themselves (all foreign equity investment must be approved by central regulator), a bank under RBI can still close down customer’s account.
2. The bank then found out an article from Coindesk about Cypherock. Well, thats it. Good publicity, so time to cancel the company.
[According to this ICICI bank, any company in Crypto must be fradulent.](https://preview.redd.it/iswseq568hr61.jpg?width=1194&format=pjpg&auto=webp&s=90890e3ee9254a18f5c8c3c84855a0a4b0168ffd)
Whats funny is that this bank ICICI itself indulged in massive fraud. Its former CEO was giving out massive loans to people close to her family. The husband of the bank’s CEO [was arrested for money laundering.](https://www.businesstoday.in/current/corporate/icici-bank-loan-scam-deepak-kochhar-tests-positive-for-covid-19/story/415999.html) These kind of scammy banks are now telling people what they can and cannot do.
Traditional bank’s monopoly to have the final say who can use a bank account and who cannot must completely be dismantled. There are already products in development that bridge the gap between crypto and traditional finance operations like salary account, paying vendors/suppliers etc. Banks have become too powerful for the good of the common person.