Trump Sues JPMorgan for $5B; ‘Debanking’ Suit Tests Wall Street’s Authority

President Donald Trump filed a $5 billion lawsuit against JPMorgan Chase (JPM) and CEO Jamie Dimon today, escalating the battle over financial censorship. The complaint, lodged in Miami-Dade County court, alleges the bank terminated Trump’s accounts in early 2021 based on “unsubstantiated, ‘woke’ beliefs” rather than compliance risk, a legal theory with immediate implications for the crypto sector’s own struggle against Operation Choke Point 2.0.

The $5 Billion Receipt

The filing, led by attorney Alejandro Brito, accuses JPMorgan of re-classifying the former president as a reputational risk shortly after January 6, 2021. Trump alleges the bank provided just 60 days’ notice to close accounts that had processed “hundreds of millions of dollars” over decades, effectively placing him on a shadow blacklist accessible to other federally regulated institutions.

JPMorgan shares dipped to $302.04 following the news, while Trump Media (DJT) hovered around $13.92. The suit seeks punitive damages for what it terms “trade libel” and violations of Florida’s Deceptive and Unfair Trade Practices Act.

“JPMC debanked [Trump] because it believed that the political tide at the moment favored doing so,” the complaint states, arguing the closure violated the bank’s own “integrity” policies.

Institutional Context: The ‘Choke Point’ Precedent

This litigation elevates “debanking” from a talking point to a systemic liability risk for Wall Street. For crypto natives, the parallels are stark. Digital asset firms have long alleged similar treatment, abrupt closures and shadow bans under the guise of “risk management.”

If Trump’s legal team can prove JPMorgan acted on political animus rather than tangible AML/KYC failures, it cracks the armor of banking discretion. A victory here would arm crypto plaintiffs with a verified roadmap to challenge arbitrary account closures. Conversely, a dismissal reinforces the bank’s absolute right to choose its customers.

The Reaction

JPMorgan rejected the claims immediately. A spokesperson stated the bank “regrets” the lawsuit but maintained the accounts were closed due to standard compliance protocols, asserting: “We do close accounts because they create legal or regulatory risk for the company.” The case now moves to discovery, where internal communications regarding the 2021 decision could become public record.