JPMorgan Chase closed the bank accounts of Strike CEO Jack Mallers in September without providing specific reasons, renewing scrutiny over whether financial institutions continue to deny services to cryptocurrency executives despite a presidential directive banning the practice. The bank cited "concerning activity" but refused to elaborate, stating only that it could not disclose details of its decision.
Key Facts:
- JPMorgan closed Strike CEO Jack Mallers' accounts in September, citing unspecified "concerning activity" during routine monitoring
- The closure occurred despite President Donald Trump's August executive order that explicitly prohibits debanking of crypto-related businesses
- Mallers' family had maintained a 30-year banking relationship with JPMorgan's private client division
What Happened: Account Closure
Mallers disclosed the account closure on Sunday through social media, revealing that JPMorgan terminated his banking relationship last month. The Bitcoin payments company executive said the bank repeatedly refused to explain the decision. "Every time I asked them why, they said the same thing: 'We aren't allowed to tell you'," Mallers wrote.
The letter from Chase referenced the Bank Secrecy Act and noted the institution's commitment to regulatory compliance and financial system security.
The correspondence also indicated the bank may not permit Mallers to open new accounts in the future.
Mallers' father has been a private client at JPMorgan for more than three decades, making the abrupt termination particularly unusual according to the Strike CEO.
Bo Hines, who previously headed Trump's Council of Advisers on Digital Assets and now works as a strategic advisor for Tether, questioned the bank's decision publicly. "Hey Chase… you guys know Operation Choke Point is over, right? Just checking," Hines wrote following Mallers' disclosure.
Why It Matters: Regulatory Questions
The closure raises questions about whether financial institutions have complied with Trump's directive. The president signed an executive order in August specifically prohibiting the debanking of cryptocurrency-related initiatives, targeting what industry leaders called "Operation Chokepoint 2.0." Critics have characterized this as a coordinated effort during the Biden administration where federal banking regulators pressured financial institutions to deny services to crypto companies and their executives.
Trump has acknowledged facing similar treatment. He told Decrypt in June that big banks "were very nasty to us" because of his politics. Eric Trump, the president's son, revealed in May that major financial institutions canceled accounts for him and family members at the end of Trump's first term, which he said influenced the family's subsequent embrace of cryptocurrency.
Jason Allegrante, Chief Legal and Compliance Officer at Fireblocks, said restricting access to banking services will not eliminate the cryptocurrency industry.
"Trying to choke off crypto won't make it go away, it'll just push it to thrive elsewhere and leave the US behind," Allegrante told Decrypt.
He warned that allowing regulators to make such decisions creates "major questions about who can access the US financial system" and "undermines the democratic rule of law for everyone."
The term Operation Chokepoint 2.0 references the original Operation Choke Point, a controversial Obama-era Department of Justice program that discouraged banks from conducting business with industries deemed high-risk, including payday lenders and firearms dealers. Crypto industry leaders argue federal banking regulators employed similar tactics during the previous administration.
Closing Thoughts
JPMorgan's decision to close Mallers' accounts contradicts the bank's recent moves toward cryptocurrency integration, including reported plans to accept Bitcoin and Ether as loan collateral and a partnership with Coinbase for direct bank-to-wallet connections. The incident suggests tensions persist between traditional financial institutions and the cryptocurrency sector despite regulatory changes under the current administration.