Key Highlights
- JPMorgan shut down Strike CEO Jack Mallers’ accounts, offering no explanation beyond “concerning activity.”
- The move appears to conflict with Trump’s executive order banning crypto-related debanking.
- Mallers and industry voices say the closure shows discrimination persists despite federal directives.
JPMorgan Chase, a New York based American multinational bank, decided to abruptly close the personal bank accounts of Strike App founder Jack Mallers, due to “concerning activity” identified during routine monitoring, without providing more specific reason.
The action has reignited a long-running controversy in the U.S. financial system: whether major banks are still sidelining crypto-linked executives even after the federal government moved to ban the practice.
Trump’s August order banned “unfair debanking,” targeting banks that had closed crypto accounts citing vague “reputational risk.” Mallers said the bank shut him out in September without warning:
A clash between policy and practice
The August executive order directed federal regulators to stop using reputational risk as justification for closing accounts, a practice critics associate with “Operation Choke Point 2.0.” Trump’s order directs the Fed, OCC, and FDIC to review past account closures and refer discriminatory cases to the DOJ.
Mallers’ account closure suggests little has changed. JPMorgan cited routine monitoring but gave no explanation, a lack of transparency that quickly drew political backlash.
Senator Cynthia Lummis said the case shows Operation Choke Point “regrettably lives on,” arguing that actions like JPMorgan’s erode trust in traditional banking and drive crypto innovation overseas.
Even within the industry, reactions varied. Tether CEO Paolo Ardoino responded to Mallers’ post with a terse assessment:
Strike stays defiant as scrutiny grows
Mallers, whose company Strike builds Bitcoin payments infrastructure, called the shutdown bizarre given his family’s decades-long relationship with JPMorgan. He said the bank refused to explain the closure, repeating only that it was “not allowed” to disclose details.
Strike’s corporate accounts were not affected, but he framed the episode as part of a broader pattern of banks sidelining crypto-linked individuals despite the White House order.
For industry observers, the case underscores how opaque account closures still are: banks can invoke broad compliance powers without alleging wrongdoing, leaving customers with no explanation and reinforcing fears of quiet, informal debanking in the crypto sector.
What’s next?
So far, JPMorgan has not issued a formal public statement explaining why Mallers was offboarded, how many customers are affected, or whether similar actions have been taken recently. Without an official letter or regulatory disclosure, the bank’s rationale remains unknown.
Until there is clarity, the case will likely renew pressure to enforce Trump’s debanking order, and fuel worries that crypto-linked individuals remain exposed to opaque bank risk models, even when operating regulated U.S. firms.
Also read: Basel Committee Chief Urges Updates to Bank Crypto Rules
