Leveraged trader James Wynn, famous for his huge gains and losses, claims his UK bank accounts were frozen with no explanation.
Summary
- James Wynn says that UK banks froze his accounts with no explanation
- The leverage trader claims that he paid ‘millions’ in taxes from these accounts
- His claims sparked a debate about debanking in the UK
A new case from the United Kingdom is igniting the debate on debanking. On Friday, September 5, UK-based leveraged trader James Wynn published a post claiming that his UK accounts were frozen. According to Wynn, this was despite his claim that he had not engaged in illicit activity and that he used the accounts to pay “millions” in taxes.
Wynn stated that banking officials only told him that the instructions were “from higher up” and that they would be in touch. So far, it is unclear whether the bank or the UK authorities were responsible for the decision. However, the posts prompted discussions on debanking.
James Wynn case sparks discussions on debanking
UK authorities can legally freeze accounts under “reasonable suspicion” that the accounts are a part of money laundering, tax evasion, or fraud. These orders can last up to 2 years and affect all balances above £3,000. In 2024, there were 341 such cases, which froze a total of £57 million in assets.
Banks can deny service or freeze accounts independently. Typically, this happens for customers who carry a “reputational risk” for the bank, including politically exposed persons or persons who are engaged in controversial activities. The practice, also known as debanking, has recently come under scrutiny, especially in the United States. In particular, the practice seems to have disproportionately affected crypto businesses.
James Wynn is a high-leverage crypto trader, famous for big wins and even bigger losses. He famously turned $700,000 into $25 million through memecoins before suffering massive liquidations. In July, he lost 99% of his estimated $100 million portfolio.
