The abrupt closure of Strike CEO Jack Mallers' personal bank accounts by JPMorgan Chase last month has ignited a renewed debate concerning the banking industry's treatment of cryptocurrency executives and the alleged persistence of "Operation Chokepoint 2.0." Mallers, whose father has been a private client with JPMorgan for over three decades, reported that the bank offered no clear explanation for the closure, only citing "concerning activity" in a letter that referenced obligations under the Bank Secrecy Act and warned against future account openings.

This incident has brought "Operation Chokepoint 2.0" back into the spotlight. This alleged Biden-era initiative, though its existence is disputed, is widely believed by critics to pressure financial institutions into limiting or denying services to crypto businesses and their leaders. Despite former President Donald Trump signing an executive order to prohibit such closures based solely on crypto-related activity and his administration's Working Group on Digital Asset Markets claiming to have ended the program, the recent debanking of Mallers fuels ongoing industry fears.

The crypto community and political figures were quick to react. Bo Hines, a former digital assets advisor to the Trump administration and strategic advisor to Tether, publicly questioned Chase's awareness that "Operation Choke Point is over." Tether CEO Paolo Ardoino remarked that the account closure might be "for the best" and framed the situation as a testament to Bitcoin's resilience, stating that organizations attempting to undermine it would ultimately fail. Senator Cynthia Lummis echoed these sentiments, lamenting that "Operation Chokepoint 2.0 regrettably lives on" and arguing that such policies undermine confidence in traditional banks, pushing the digital asset industry overseas.

Mallers, who has a history of vocal criticism against JPMorgan CEO Jamie Dimon, leveraged the moment to champion Bitcoin, urging individuals to "Seek truth. Stand with integrity. Fight for freedom. Protect Bitcoin at all costs." He also leads Twenty One, a public company backed by Tether and Bitfinex, which is actively pursuing Bitcoin acquisitions, positioning itself as a rival to entities like Michael Saylor's Strategy.

The controversy surrounding Mallers' debanking is further complicated by JPMorgan's own legal and ethical scrutiny. Mallers' allusions to Senator Ron Wyden's criticisms highlighted allegations that JPMorgan executives were aware of over $1 billion in suspicious transactions linked to Jeffrey Epstein. Senator Wyden had previously rejected the bank's attempts to shift blame onto a single former employee, emphasizing that multiple top executives, including Mary Erdoes and Jes Staley, allegedly ignored internal warnings and significantly delayed filing Suspicious Activity Reports (SARs) regarding Epstein for six years post-2013 termination. Wyden's demands for extensive internal documents and communications signal a persistent call for federal scrutiny into the bank's accountability in the Epstein affair.

Paradoxically, even as JPMorgan faces backlash for its dealings with crypto executives and its past controversies, the bank's research arm has expressed a surprisingly positive outlook on Bitcoin. Last month, JPMorgan analysts suggested that Bitcoin might be undervalued relative to gold, projecting a potential value of $165,000 if the "debasement trade" continues. They noted that recent gold price gains make Bitcoin more attractive, especially as its volatility ratio compared to gold drops below 2.0, estimating a 42% market cap increase needed to match gold's investment in bars, coins, and ETFs. This contrasting stance highlights the complex and often contradictory relationship between established financial institutions and the evolving world of digital assets.