U.S. Regulation

JPMorgan Chase Closes Strike CEO Jack Mallers’ Accounts, Spurring Crypto Debanking Concerns

Strike CEO Jack Mallers said JPMorgan Chase closed his bank accounts without a proper explanation last month, prompting concerns of debanking of crypto CEOs. “Last month, J.P. Morgan Chase threw me out of the bank,” Mallers wrote on social media platform X on Sunday. “It was bizarre. My dad has been a private client there for 30+ years.”

When Mallers inquired why his accounts were closed, he said JPMorgan’s only response was: “We aren’t allowed to tell you.” Mallers also shared an image of what appears to be a letter from JPMorgan Chase. “So proud I got it framed,” Mallers wrote. The letter said that the bank had identified “concerning activity” on Maller’s account.

“We are committed to regulatory compliance and ensuring the security and integrity of the financial system,” the letter said. “Because of this commitment, we may not be able to open new accounts for you in the future.” The X post prompted widespread skepticism among users, who left comments claiming that the alleged “Operation Chokepoint 2.0” remains in effect despite the change in the White House administration. 

Operation Chokepoint 2.0 refers to an alleged coordinated effort by U.S. federal banking regulators during the Biden administration to pressure traditional financial institutions into denying services for businesses, executives, and individuals in the crypto ecosystem. In August, President Trump signed an executive order that penalizes firms that debank crypto-related businesses.

“The Trump Administration has already ended Operation Choke Point 2.0 once and for all by working to end regulatory efforts that deny banking services to the digital assets industry,” Trump’s Working Group on Digital Asset Markets said back in July. Meanwhile, Tether CEO Paolo Ardoino wrote to Mallers in a reply post that what happened is “for the best.”  In a separate X post, Ardoino wrote: “Bitcoin will resist to the test of time. Those organizations that try to undermine it, will fail and become dust. Simply because they can’t stop people choice to be free.”

Terron Gold

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