Why JPMorgan and Jack Mallers Went Radio Silent on ‘Debanking’ Drama – The Plot Thickens!

Finance

What to know:

Jack Mallers, CEO of Strike, accused JPMorgan of closing his accounts without explanation, sparking a viral reaction in the crypto community.
The closure has raised questions of anti-competitive motives, coinciding with JPMorgan’s launch of a similar payment token, JPMCoin.
Both parties have remained largely silent. JPMC cites confidentiality rules under the Bank Secrecy Act as a reason for not disclosing details.

When a Wall Street banking titan and a crypto CEO throw punches over debanking, the world watches-and the ensuing mess is quite the spectacle. Grab your popcorn 🍿.

On November 23, Jack Mallers, CEO of Strike (the fintech hero we didn’t know we needed), decided to drop a social media bombshell. The result? JPMorgan allegedly closed all his accounts without giving him a reason. No, seriously. He says he was booted out of the bank. For what? No one’s saying. “We’re not allowed to tell you,” was the official response. Suspicious much? 🤔

Fast forward to a Twitter circus where Tether CEO Paolo Ardoino chuckled and said, “I think it’s for the best.” Meanwhile, real estate mogul Grant Cardone-who’s probably too busy counting billions to care-decided it was time to boycott JPMorgan. He pulled every last cent from his accounts. Maybe he was inspired by the drama, who knows. 🙄

And then there’s Bo Hines, former adviser to President Trump (because why not bring in politics at this point?), who cheekily reminded JPMorgan that “Operation Chokepoint is over.” So, you know, no need for secretive bank shenanigans anymore. Or is there? 🤐

Of course, the drama wouldn’t be complete without a few senators getting involved. Senator Cynthia Lummis stepped in to say that policies like JPMorgan’s only serve to drive crypto businesses overseas. Well, thanks for the insight, Senator. 🧐

While it’s true big banks often freeze accounts and quietly sweep it under the rug, this particular case was more like a rug with a massive lump in it. Mallers and Strike aren’t exactly obscure players in the crypto game, and let’s be honest, when a titan like JPMorgan moves against them, people are bound to notice.

“It’s hard to ignore the timing,” says Timothy O’Regan, an expert in emerging markets. And who wouldn’t? Not a week after Mallers got booted, JPMorgan rolled out its own digital currency-JPMCoin. Coincidence? You be the judge. 💰

The debanking letter

Now, this is where things get interesting. Mallers decided to keep JPMorgan’s “Dear John” letter (you know, the one where they kicked him to the curb) in his back pocket for two whole months before unveiling it to the public. Oh, the suspense! 😏 In it, JPMorgan claims the closure was due to “concerning activity” associated with his account. What kind of activity, you ask? Who knows. They’re not telling.

Here’s the kicker: The letter states that under the Bank Secrecy Act (BSA), banks are required to “periodically review customer relationships,” and it looks like Mallers’ relationship with JPMorgan was… well, not in their best interests anymore. Sounds like a breakup letter, doesn’t it? 🤷‍♂️

So, CoinDesk decided to dig deeper into the matter (as journalists do), but all they got from JPMorgan was a “no comment” from their spokesperson. Classic. 🧐

Still, a source close to JPMorgan reassured the world that they’re actually pretty friendly with crypto businesses. No biggie, folks! Apparently, they bank crypto companies, provide payment services, and act as financial advisers. Oh, and they definitely don’t ‘debunk’ crypto companies. Sure thing, buddy.

In the end, Mallers and Strike took the high road (or maybe they just couldn’t be bothered). “We aren’t commenting further here,” said Strike’s press officer. Oh, how mature. 🤫

What does this all mean? Well, who knows? Both sides have played the silent game, citing confidentiality and “secrecy rules” (Bank Secrecy Act, anyone?). A Cato Institute post even suggested that reforming confidentiality laws could shed more light on debanking practices. Sounds like a great idea-too bad it might take another century to happen. ⏳

A question of timing

For those of you still holding onto hope for clarity, here’s a fun tidbit: under the BSA, banks are not allowed to spill the beans about suspicious activity reports (SARs). It’s all about not tipping off the bad guys, you see. So, in other words, we may never know what happened. Nice, right? 😅

As for the timing of all this, O’Regan suspects JPMorgan might have debanked Mallers because of its shiny new toy-JPMCoin. After all, both JPMCoin and Strike operate in the same space, only one is under the control of a giant bank, while the other is for the masses. Coincidence? Probably not. 😈

And that, my friends, is where the plot thickens. Debanking a competitor just days after launching your own similar product? It’s a good look. Not. 👀

2025-12-01 22:03

What to know:

The debanking letter

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