JPMorgan Closed Strike CEO Jack Mallers' Accounts Abruptly

JPMorgan Closed Strike CEO Jack Mallers' Accounts Abruptly

Summary:
Jack Mallers, the CEO of Strike, revealed that JPMorgan Chase unexpectedly shut down his personal bank accounts in September without providing any reason. This incident has sparked concerns in the cryptocurrency industry regarding the politically motivated “debanking” of crypto executives.

Key Takeaways:

Jack Mallers reported the unexpected closure of his accounts by JPMorgan Chase.
The bank cited “concerning activity” under the Bank Secrecy Act as the reason for closure.
This event has revived discussions about “Operation Chokepoint 2.0.”

JPMorgan's Unexplained Account Closure

"Last month, JPMorgan Chase expelled me from the bank in a strange turn of events. My father has been a private client there for over 30 years. Every inquiry I made about the closure yielded the same response: 'We aren’t permitted to disclose anything,’" Mallers shared on X.

Chase Points to "Concerning Activity"

Mallers disclosed a letter from JPMorgan, indicating that their routine monitoring had detected unspecified “concerning activity.”

The notice highlighted obligations under the Bank Secrecy Act, cautioning that the bank may not be able to open new accounts for him in the future.

This occurrence happens shortly after former President Donald Trump enacted an executive order that prohibits financial institutions from closing accounts of individuals or firms solely due to involvement in cryptocurrency.

JPMorgan’s actions have prompted some individuals in the industry to question whether the alleged “Operation Chokepoint 2.0”—a supposed initiative during the Biden administration to cut off crypto firms from the banking sector—has been officially discontinued.

Bo Hines, who led Trump’s Council of Advisers on Digital Assets and is currently a strategic advisor to Tether, did not hold back in criticizing the bank's actions.

“Hey Chase… you guys know Operation Choke Point is over, right? Just checking,” he remarked on X.

Mallers’ History with JPMorgan's CEO

Mallers has previously engaged in public disputes with JPMorgan CEO Jamie Dimon, who has been outspoken in his criticism of Bitcoin. In a Yahoo Finance interview last year, Mallers dismissed Dimon’s remarks, stating, “What do I think about Jeffrey Epstein’s banker being worried that a distributed, decentralized, open public currency could be misused while sitting at a ski resort in Davos? I really don’t care.”

Ongoing Concerns Over Banking and Cryptocurrency

For years, crypto companies have reported informal pressures from U.S. regulators encouraging banks to shun digital-asset clients—a claim that the Biden administration has denied.

Operation Chokepoint 2.0 refers to an initiative from the Obama-era Department of Justice that pushed banks to limit services for “high-risk” sectors, such as payday lenders and firearms dealers.

Defense by Banks: Risk and Regulatory Compliance

The issue of “de-banking” has been a persistent grievance among conservative groups, which argue that their accounts and donations are frequently restricted or closed without adequate explanations.

Cryptocurrency firms are similarly concerned about perceived unofficial pressure from regulators, leading banks to quietly sever ties with blockchain startups, particularly following the collapse of crypto-friendly banks like Silvergate and Signature Bank.

Banks argue that such decisions are driven by risk assessments, citing compliance with anti-money-laundering (AML) regulations and the increasing scrutiny of emerging sectors such as digital assets. They highlight existing regulatory challenges that complicate the onboarding of crypto clients, including stringent know-your-customer (KYC) and transaction monitoring requirements.