The US Securities and Exchange Commission, under former chairman Gary Gensler, uses redevelopment of the founders of pressure of decentralized financial platforms from re -employment in the industry, according to firm firm firm, Joey Krug’s fund partner.
“The thing people don’t know is that the government, in many cases, went to the founders of Defi Protocols (…) and generally told the founders that you would effectively make a negotiation of us,” Krug told the stage at the Ethdenver Conference on February 27.
“In many cases, they say you also need to sign something that says you will never work in crypto again,” he added. “By the way, this agreement, you don’t really talk about it in public because there is a clause that is not coherent.”
Krug’s claim increases to a Crypto industry rumor So -called “Operation Chokepoint 2.0” which says the Biden administration tried to kill the local industry through actions that enforce the regulator and by pressing Banks To cut or limit services to crypto companies.
“These agencies usually go to the founders, and they will say, ‘Hey, if you don’t agree with it, you’ll just end up in jail.'”
Krug said civil agencies The Department of Justice needs to be postponed in order to file criminal charges, but “none of these things are defined in the DOJ.” He also admitted that “none of these founders really ruined the law.”
Krug said that at first, “he didn’t really believe” such negotiations exist, but some founders – whom he did not name – eventually showed him their agreements.
Joey Krug (left) on stage with Axios’ Brady Dale (right) in Ethdenver 2025. Source: Turner Wright/Cointelegraph
“Enough, there are clauses that say you can never work in crypto (and) you can’t talk about it with anyone,” he said.
“It’s a crazy, crazy administrative state that really out of control.”
The SEC did not immediately respond to a request for comment.
Related: Saga CEO discussed moving the crypto industry toward GOP – Ethdenver
Since 1972, the SEC has included a “gag rule” in its arrangements The defendants are prohibited from criticizing The agency’s claims – a clause that Commissioner Hester Peirce said that “drops the integrity of regulation.”
Krug said the only way Defi founders could comment on the regulations was if Congress asked them to testify. He added that there are “many founders who want to talk about how the government really fired them if Congress asked them to testify.”
Earlier this month, the bank-regulated Federal Deposit Insurance Corporation was released Almost 800 pages of so-called “pause letters” that it sent banks and financial companies to their crypto services.
Both the US House and Senate were held Hearing on crypto debanking In early February heard from crypto executives in their claimed Torrid dealings in an effort to access financial services under the Biden Administration.
Magazine: How Crypto Laws Changes Worldwide in 2025
Further report by Turner Wright.
