JPMorgan closed the personal bank accounts of Strike CEO Jack Mallers on Nov. 23, highlighting the rift between banks public support for crypto and the strict risk rules they apply behind the scenes. Mallers shared a notice citing "concerning activity" in a post on X, adding that the bank offered no explanation despite his father being a private client for more than 30 years.
The news at a glance
- Who: Jack Mallers, CEO of Bitcoin payments app Strike.
- What: Personal JPMorgan accounts closed for "concerning activity."
- When: Disclosed Nov. 23.
- Why it matters: Renews concerns about crypto founders losing access to banking, even when their companies operate legally.
Why this matters
For everyday users and startup founders, losing a bank account can feel like having your credit card shut off without warning. Bills, payroll, and rent can all be disrupted. The incident adds to a years-long worry in crypto: that traditional banks will celebrate "innovation" in public while quietly freezing out people viewed as risky.
Hedy Wang, CEO of Block Street, said banks often talk up new tech but get conservative when their own payment networks might be affected. In her view, its usually easier for a bank to end a relationship than to constantly defend a customer flagged by internal compliance systems.
How banks see the risk
Banks rely on anti-money laundering (AML) checks, know-your-customer (KYC) rules, and software that scores customer risk. People who move funds on Bitcoin railseven legallycan trigger extra review. If the bank fears regulatory questions, the lowest-friction choice can be to close the account.
Strike is a Bitcoin-focused app that lets people buy and sell Bitcoin, send money across borders with low fees, and pay bills. That activity is legal, but it touches the parts of finance that draw the most scrutiny from regulators and bank examiners.
Pattern, but not a new Operation Choke Point
Ryne Saxe, CEO of Eco, said abrupt account closures for crypto firms and executives have a long track record in the U.S. He cautioned against reading one case as a coordinated industry attack, noting this episode doesnt look like the sweeping pressure some in crypto blamed on the Biden-era "Operation Choke Point 2.0." Still, he argued the broader pattern is real and counterproductive for customers.
David Tomasian, CEO of Curious, said big banksoften called Traditional Finance (TradFi)tighten their risk boundaries when they sense regulatory heat. Policies arent transparent, he added, which leaves crypto leaders classified as high-risk by default.
What this could mean for the market
- Founders may separate personal and company banking across multiple institutions to reduce single-bank risk.
- Crypto-native banks and fintechs could see more demand, though many face their own regulatory hurdles.
- Lack of clear rules raises costs for compliant companies, pushing innovation overseas where guidance may be firmer.
Context for newcomers
Debanking is an informal term for when financial institutions close or restrict accounts. Its not a legal judgment; its a risk decision. In crypto, that often happens when a person or company is closely tied to moving money through blockchains, which compliance tools can struggle to interpret compared with traditional payments.
Big picture
Saxe argued that institutions treating crypto mainly as a reputational risk will fall behind global trends. Meanwhile, banks say they must follow strict rules to prevent money laundering and keep regulators satisfied.
What to watch next
- Any follow-up from JPMorgan or Mallers with more detail on the flagged activity.
- New guidance from U.S. bank regulators (OCC, FDIC, FinCEN) on how to bank crypto firms and executives.
- Whether Europes MiCA rules or other jurisdictions attract more crypto payments activity due to clearer frameworks.
JPMorgan did not respond to a request for comment by publication time.