In a revealing court admission, JPMorgan Chase has confirmed for the first time that it closed bank accounts linked to Donald Trump and his businesses in February 2021, following the chaotic events of January 6. This disclosure marks a pivotal moment in an ongoing legal battle, further complicating the already tumultuous relationship between the former president and the financial giant.
Dan Wilkening, the former chief administrative officer at JPMorgan, made this acknowledgment in court documents, clarifying that Trump was informed through letters dated February 19, 2021, that accounts held within both the commercial and private banking divisions would be shut down. The reason given, however, remains vague, with the bank stating that it may decide that a client’s interests are “no longer served” by maintaining a relationship.
In late January, Trump launched a lawsuit against the bank, claiming the account closures were politically motivated and accusing JPMorgan of placing him and his businesses on a reputational “blacklist.” The ex-president is seeking a staggering $5 billion in damages, with his legal team branding JPMorgan’s court admission a “devastating concession.” They assert that the bank’s actions have resulted in considerable financial damages to the Trump family.
“JPMorgan Chase admitted to unlawfully and intentionally de-banking President Trump, his family, and his businesses, causing overwhelming financial harm,” stated Trump’s legal representatives.
JPMorgan, however, has dismissed the lawsuit, with spokesperson Trish Wexler maintaining the position that the bank closes accounts due to legal or regulatory risks, and that these decisions are not based on political affiliations.
From Debanking to Crypto
The impact of being “debanked” was not just a setback for Trump; it sparked a broader shift within the family towards cryptocurrency. Eric Trump has openly discussed the challenges faced after being cut off by multiple banks, claiming he lost access to 300 accounts overnight when Capital One severed ties. This abrupt transition catalyzed a newfound interest in crypto assets.
“Capital One stripped 300 bank accounts from me in the middle of the night,” Eric Trump recounted in a previous interview, highlighting the significance of this experience in pushing the family towards blockchain solutions.
In light of these developments, Eric Trump took the initiative to spearhead the creation of World Liberty Financial (WLFI), a cryptocurrency platform that seeks to mitigate the impact of traditional banking hurdles. Notably, this platform has launched a stablecoin with a reported valuation of $3.4 billion, indicating a significant entry into the digital currency landscape.
Moreover, during his second term, Trump has actively advocated for regulations that favor the burgeoning crypto market, positioning cryptocurrency as a means to escape what the Trump family deems the “weaponization” of traditional financial systems.
A legal maneuver by JPMorgan has sought to transfer Trump’s lawsuit from a Miami federal court to New York, as they argue that the dispute holds stronger ties to that jurisdiction. The recent court filings have now incorporated the letters indicating the account closures, with Trump’s team asserting that they bolster the claim of improper account termination.
As this case continues to unfold, it poses significant questions regarding the intersection of finance, politics, and cryptocurrency, with the lawsuit marking another chapter in a complex saga between a former president and one of the largest banks in the world.
