JPMorgan Cuts Ties with Strike CEO, Raising 'Chokepoint 2.0' Concerns

JPMorgan Chase's recent decision to sever ties with Jack Mallers, the CEO of the Bitcoin payments company Strike, has sparked fears of a renewed wave of debanking against the cryptocurrency sector. This situation echoes previous concerns related to government actions that allegedly pressured banks to cut off financial services to crypto businesses, raising alarms about the future of cryptocurrency in the US.

Key Takeaways

Jack Mallers, CEO of Strike, revealed that JPMorgan closed his personal accounts without explanation.
This incident has raised fears of "Operation Chokepoint 2.0,” suggesting government pressure on banks against crypto companies.
US Senator Cynthia Lummis criticized JPMorgan's actions, claiming they damage confidence in traditional banks and may push the crypto industry abroad.
Debanking efforts are expected to continue until a new Federal Reserve governor is appointed, potentially in January 2026.
Lummis has also accused the FDIC of destroying materials related to Operation Chokepoint 2.0.

Rising Concerns Over Debanking in the Crypto Industry

JPMorgan Chase’s recent move to cut ties with Strike’s CEO Jack Mallers has reignited anxieties around a resurgence of debanking against the cryptocurrency sector in the US. Mallers announced on social media that JPMorgan closed his personal accounts without providing any clarity.

“Last month, JP Morgan Chase threw me out of the bank,” Mallers stated. “Every time I inquired about the reasons, the response was always the same: We aren’t allowed to tell you.” Cointelegraph has reached out to JPMorgan for their perspective on the matter.

This action has amplified fears surrounding what critics are dubbing Operation Chokepoint 2.0. This term refers to allegations that the government is pressuring banks to sever their ties with cryptocurrency companies.

Source: Jack Mallers

“Operation Chokepoint 2.0 is unfortunately still alive,” said US Senator Cynthia Lummis in a post on social media. She noted that actions such as those taken by JPMorgan “undermine confidence in traditional banking” and may force individuals and businesses within the digital asset space to seek services elsewhere.

Other prominent figures in the cryptocurrency community, like Caitlin Long from Custodia Bank, echoed these concerns, suggesting that debanking efforts could persist until January 2026 when a new Federal Reserve governor may take office. “Trump won’t have the ability to appoint a new Fed governor until January,” Long explained during a recent discussion on Cointelegraph’s Chainreaction show, hinting at ongoing tensions.

Long emphasized that her bank had been one of those targeted by US debanking initiatives, costing her business valuable time and financial resources.

The collapse of crypto-friendly banking institutions in early 2023 first raised suspicions of Operation Chokepoint 2.0, resulting in reports that 30 technology and cryptocurrency founders were denied access to banking services during the administration of former President Joe Biden.

In August 2025, President Donald Trump signed an executive order addressing the issue of debanking, which aims to protect politically unfavorable sectors, including cryptocurrency, from being denied banking services.

Lummis Alleges FDIC Misconduct

The situation escalated in January when an anonymous whistleblower contacted Senator Lummis, alleging that the Federal Deposit Insurance Corporation (FDIC) was destroying critical documents related to Operation Chokepoint 2.0.

“The FDIC’s alleged efforts to destroy and conceal materials from the US Senate concerning Operation Chokepoint 2.0 is both unacceptable and illegal,” Lummis stated in a letter dated January 16, warning of “swift criminal referrals” if any misconduct is confirmed.

Senator Lummis’s open letter to FDIC Chair Marty Gruenberg.

Historically, traditional financial institutions have criticized cryptocurrency businesses for supposedly facilitating illegal financial activities. However, US banks themselves have paid over $200 billion in fines for compliance failures in the last two decades, as shown by data from Better Markets and the Financial Times.

Fines and penalties paid by the six leading US banks over the past 20 years. Source: Better Markets/FT

Among the top offenders, Bank of America accounted for about $82.9 billion in penalties, while JPMorgan Chase faced fines exceeding $40 billion.

Conclusion

The withdrawal of financial support from a major bank like JPMorgan poses significant challenges for the cryptocurrency ecosystem, especially as fears of excessive regulation and debanking resurface. Stakeholders in the crypto sphere are now left wondering about the future of their businesses in an increasingly challenging banking environment.