Catelyn Lang, chief executive of Custodia Financial institutions, criticized Washington's regulators and due process for "cracking down on falsehood" on the password industry, ignoring her warnings about important "frauds" said to have been carried out by failed objects.

In an online article entitled "Washington City shooting warns the messenger of password collapse" released on February 17, it has been criticizing the password control methods of the relevant departments, failing to protect investors and alienating outstanding participants in the field:

"the incorrect crackdown in Washington can only push the risk into the dark, allowing regulators to start playing gopher when the risk continues to emerge in unexpected places."

Long notes that with her data asset hosting company, she "has been summoning the worst passwords while trying to create a reasonable, legal, compliance alternative to reduce fraud to the garbage pool." But [...] Most of today's current policy makers seem ready to wipe out these relatively upright pioneers.

The Custodia Bank CEO claimed that her persistent efforts to work with government companies were finally left behind because she was talking about a series of negative frictions in her business recently.

"at the same time, Custodia was attacked by the White House, the Federal Reserve Federation, the Kansas City Fed and Congressman Danny Durbin (she confused our own banks with no financial leverage, 100% liquidity and capital adequacy ratio with FTX in a speech in the House of Lords)," she said. She added:

Custodia is trying to become a federal regulatory target-which is what current policy makers of both parties claim to be the most anticipated outcome. However, Casstodina was rejected and looked down upon because he dared to enter the door.

Her views are the same as those of Coinbase CEO Bobby Armstrong and others. At one point, Armstrong showed that departments such as the Securities and Exchange Commission (SEC) were indifferent to the diligence of Coinbase in maintaining heartfelt conversations.

Earlier that month, Armstrong also named and criticized the lack of clarity in US regulation, and his supervision may have been based on inspections after the Securities and Exchange Commission (SEC) shut down Kraken's chip service on Feb. 9.

There is no doubt that regulators and due process in Washington today are uncomfortable with their inability to block data encryption suspects. DC must have hair. "Long wrote in a well-informed post, adding:

The focus of today's tough crackdown comes from many relevant policy makers who are attracted by fraudsters. After turning more than 180 degrees, they now throw the baby out with the hot water.

An unheeded warning

On Twitter, Long also stressed that long before the collapse of several password companies in 2022, she and many others had tried to warn Washington to "assist law enforcement agencies to stop" major fraud, but to no avail.

Long made her debut and announced that two months before the collapse of an unnamed password company, resulting in losses to millions of customers, she had handed over evidence about the possible crime and punishment of an unnamed password company to law enforcement agencies.

Jesse Jerome, co-founder and CEO of Kraken, responded to Long's tweets and confirmed her statement, saying: "I can't tell you how exasperating it is to emphasize a lot of warning signs and obvious illegal activities to regulators and to make them ignore problems for years."