Jack Mallers, CEO of the Bitcoin payments company Strike, has had his personal accounts closed by JPMorgan Chase without explanation, fueling renewed concerns over a coordinated “debanking” campaign targeting the crypto industry.

A Renewed Wave of Pressure

The incident echoes the banking turmoil of 2023, when allegations of an “Operation Chokepoint 2.0” first surfaced. During that period, numerous founders in the technology and cryptocurrency sectors reported being denied access to essential banking services. Mallers, whose company utilizes the Bitcoin Lightning Network for payments, announced on social media that JPMorgan had terminated his accounts, intensifying fears that financial institutions are once again putting pressure on crypto-related businesses and individuals.

Caitlin Long, CEO of Custodia Bank, noted that her own company has been a frequent target of these debanking efforts, costing Custodia months of progress and millions of dollars. She suggested the recent events could be precursors to a larger conflict between the crypto industry and traditional banking regulators.

Lummis Accuses FDIC of Destroying Records

The controversy took a more serious turn when Senator Cynthia Lummis accused the Federal Deposit Insurance Corporation (FDIC) of illegally destroying records related to Operation Chokepoint 2.0. In a letter dated January 16, Lummis revealed that her office had been contacted by a whistleblower alleging the agency was concealing materials from a U.S. Senate investigation.

Lummis condemned the alleged actions as “unacceptable” and “illegal,” threatening “swift criminal referrals” if the claims were substantiated. Her letter directly addressed FDIC Chair Marty Gruenberg, demanding an immediate halt to the destruction of any relevant documents.

Traditional Banks Under Scrutiny

While traditional financial institutions often criticize the crypto sector for its potential role in illicit finance, data reveals a history of significant compliance failures among major U.S. banks. According to information compiled by Better Markets and the Financial Times, these banks have paid over $200 billion in fines in the last two decades for various violations.

Bank of America was responsible for approximately $82.9 billion of these penalties, while JPMorgan Chase, the bank that closed Mallers’ accounts, has paid more than $40 billion in fines during the same period.