The largest bank in the US, JPMorgan, admitted to de-banking Donald Trump following the 2021 Jan. 6 Capitol attack in a move that ultimately led the Trump family to start going down the crypto rabbit hole.
Dan Wilkening, JPMorgan’s former chief administrative officer, acknowledged that the bank had decided to close accounts tied to Trump, marking the first time JPMorgan has admitted to doing so on record, according to court filings seen last week by outlets including Fortune and CNBC.
“In February 2021, JPMorgan informed Plaintiffs that certain accounts maintained with JPMorgan’s CB [commercial bank] and PB [private bank] would be closed,” Wilkening wrote in a case involving Trump suing the bank.
Up until now, JPMorgan had failed to provide a concrete answer on the de-banking in court or in public.
Trump’s lawsuit against JPMorgan was filed in late January, alleging that the bank unlawfully terminated his accounts purely for political reasons, which ultimately put him and his family on a reputational “blacklist.” Trump is seeking $5 billion in damages.
President Trump’s legal team said in a statement that it marks a “devastating concession” that proves President Trump’s entire claim.”
“JPMorgan Chase admitted to unlawfully and intentionally de-banking President Trump, his family, and his businesses, causing overwhelming financial harm,” the team said.
In a statement to CNN on Sunday, JPMorgan spokeswoman Trish Wexler said: “While we regret President Trump has sued us, we believe the suit has no merit.”
Related: World Liberty launches $3.4B stablecoin: How it fits into onchain credit systems
She added that the bank closes accounts that pose legal or regulatory risk for the company, but does not close accounts for political or religious reasons.
“We regret having to do so, but often rules and regulatory expectations lead us to do so,” she said.
Debanking led to the establishment of WLFI
Donald Trump’s son, Eric Trump, has said on multiple occasions that the family leaned heavily into crypto after they were “debanked” following the riots in Washington, DC.
“Capital One stripped 300 bank accounts from me in the middle of the night,” Eric Trump told Fox News in August last year, adding that his “love” for crypto was sparked by having no other choice but to adopt the technology.
“It has become the fastest-growing industry anywhere in the world. It has removed a lot of the power from the big banks, who have weaponized their platforms against the American people, and I could not be more proud to be here,” he said.
Following the de-banking, Eric Trump ultimately led the push to establish the Trump family’s sprawling crypto platform World Liberty Financial, while the president has been at the forefront of a push for positive crypto regulation during his second stint in the White House.
Magazine: Big questions: Should you sell your Bitcoin for nickels for a 43% profit?
