JPMorgan Chase has closed the personal accounts of Jack Mallers, CEO of the bitcoin Lightning Network payments company Strike, without providing an explanation.
Mallers revealed on social media:
“Last month, J.P. Morgan Chase threw me out of the bank. Every time I asked them why, they said the same thing: We aren’t allowed to tell you.”
Operation chokepoint concerns resurface
The move has revived fears of ‘Operation Chokepoint 2.0,’ a term used by critics to describe alleged government pressure on banks to deny services to bitcoin and digital asset firms.
U.S. Senator Cynthia Lummis responded on X:
“Operation Chokepoint 2.0 regrettably lives on. Actions like JP Morgan’s undermine the confidence in traditional banking while sending the digital asset industry overseas. It’s past time we put Operation Chokepoint 2.0 to rest to make America the digital asset capital of the world.”
Industry-wide impact and political response
Caitlin Long, CEO of Custodia Bank, noted that such debanking efforts targeting bitcoin companies may persist until at least January 2026, when the next Federal Reserve governor can be appointed.
Long’s own Custodia Bank lost significant time and resources due to similar actions.
The issue gained national attention in early 2023 after the collapse of several bitcoin-friendly banks, with reports that dozens of technology and bitcoin founders were denied access to banking services.
Regulatory scrutiny and legal concerns
Debanking concerns intensified in January when Senator Lummis’s office was contacted by a whistleblower alleging the Federal Deposit Insurance Corporation (FDIC) was destroying materials related to Operation Chokepoint 2.0. Lummis issued a letter warning of potential criminal referrals if these allegations proved true.
Traditional banks have long criticized bitcoin firms for compliance risks, yet data shows major U.S. banks, including JPMorgan Chase, have themselves paid over $200 billion in fines for compliance failures in the past two decades.
