JPMorgan Chase, a multination investment bank in order to extend its services into the crypto industry has hired a new head of digital assets regulatory policy. This move landed after the bank’s 3rd quarter net profits dipped by 17%.
JPMorgan hires Ponzi scheme alleged firm exec
Earlier, Jamie Dimon. CEO of JPMorgan Chase called out the cryptocurrencies as a decentralized Ponzi scheme. However, Bloomberg has reported that Aaron Iovine, a former Celsius executive has joined JPMorgan as the executive director for digital assets regulatory policy.
Aaron Iovine was heading the department of Policy and regulatory board for the digital asset lending firm Celsius. The firm went on to file for bankruptcy amid the recent crypto market collapse. However, ex Celsius employee hasn’t responded to the matter.
The report suggests that JPMorgan is trying to build its policy ranks in the emerging crypto space. Certain voices in the market have increased with the increase in regulatory scrutiny and decreasing cryptocurrencies’ value. While JPMorgan executives have been very vocal critics of digital assets and their use case.
Chase exec contradictory statements
Dimon in congressional testimony on September 21, 2022, gave out the Ponzi Scheme comment. However, he also called himself a major skeptic of digital assets. While the global payment head at JPMorgan mentioned that he sees very little demand for digital tokens as a payment tool.
Meanwhile, JPMorgan reported a major drop in its quarterly net profits. It shrank by 17% to stand at $9.7 billion. However, funds set for reserve have also registered a major drop.
The bankruptcy ridden digital asset lending firm is stuck in the legal tussle. Coingape reported that the US bankruptcy chief who is overseeing the Celsius case has suggested that they can refer to the UK crypto consultation paper. He added that the court might consider the paper in cases involving digital assets raising legal issues.
