May 29, 2024
Dimon Slams Crypto; JPMorgan Fined $39B, Launches Token
Latest Cryptocurrency News

Dimon Slams Crypto; JPMorgan Fined $39B, Launches Token

JPMorgan CEO Jamie Dimon is facing backlash from the crypto community on X (formerly Twitter) after asserting that Bitcoin’s only legitimate use is for criminal activities. Dimon made these remarks during a hearing before the United States Senate Committee on Banking, Housing, and Urban Affairs on Dec. 5, where he suggested the government should shut down Bitcoin.

Critics swiftly highlighted the hypocrisy in Dimon’s statements, pointing out that JPMorgan is the second-largest penalized bank, with $39.3 billion in fines across 272 violations since 2000, $38 billion of which occurred under Dimon’s leadership since 2005. Crypto lawyer John Deaton and VanEck strategy adviser Gabor Gurbacs criticized Dimon, noting the substantial fines paid by banks globally, totaling $380 billion this century.

JPMorgan reached a $75 million settlement with the U.S. Virgin Islands in September over allegations related to Jeffrey Epstein’s sex trafficking operation, but settlements do not imply guilt. In 2013, the bank paid a $13 billion fine for misleading investors about “toxic” mortgage deals. The bank was also involved in a major cocaine bust in 2019.

Despite Dimon’s strong opposition to the digital asset sector, JPMorgan recently launched its crypto token, JPM Coin, on a private Ethereum blockchain for institutional clients. The bank rolled out a blockchain-based tokenization platform in October and contributed to a $65 million funding round for Ethereum infrastructure firm Consensys in April 2021.

Dimon seemingly differentiated between centralized and decentralized cryptocurrencies, labeling decentralized currencies as Ponzi schemes. Bankless criticized Dimon’s assertion, emphasizing the decentralized nature of Bitcoin and the impracticality of a government-imposed ban. Dimon’s comments prompted a fact-check on X, confirming that less than 1% of cryptocurrency transactions are illicit.

Image: Flickr

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