The legal dispute between the former President and the bank reignites crypto sector criticism over arbitrary account closures.
According to CNBC, former U.S. President Donald Trump has filed a lawsuit against JPMorgan Chase and its CEO Jamie Dimon, accusing the bank of arbitrarily closing several accounts linked to him. The lawsuit, filed on January 22 in the Miami-Dade County Court in Florida, puts the practice known as debanking back in the public eye.
Trump’s lawyers claim that JPMorgan Chase terminated “without warning or remedy” multiple bank accounts in February 2021. The plaintiffs, which include LLCs operating in hospitality and golf, argue that the bank’s unilateral decision was motivated by political and social considerations.
In the complaint, the plaintiffs assert that “JPMorgan Chase engaged in debanking of their accounts because it believed the political climate at the time favored such a decision.” The central allegation is therefore discrimination based on political views.
JPMorgan’s response
JPMorgan Chase has denied the allegations in an official statement. “JPMorgan Chase does not close accounts for political or religious reasons,” the bank said. It explained that account closures occur when accounts pose legal or regulatory risks to the company, while expressing regret over the necessity of such actions.
The bank also emphasized that it has asked both the current and previous administrations to change the rules and regulations that compel it to make these decisions. JPMorgan stated its support for Trump administration efforts to prevent the politicization of the banking sector.
