Lawsuit Against Capital One for Debanking

Custodia Bank founder Caitlin Long hopes a new lawsuit will reveal more about debanking during President Biden’s administration.

The Trump Organization has sued Capital One Bank, claiming that it closed over 300 accounts in 2021 without justification, amid concerns from tech and crypto leaders about a debanking crisis affecting previous administrations.

> “Today, the Trump Organization filed a lawsuit in Miami-Dade County against @CapitalOne to hold the bank accountable for their egregious conduct in unjustifiably terminating over 300 of the company’s bank accounts without cause, in 2021.”
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> — Eric Trump (@EricTrump) March 7, 2025

Long’s Custodia Bank, along with notable voices in the crypto sector such as Nic Carter from Castle Island Ventures, point to what they call Operation Choke Point 2.0—a coordinated effort by regulators, including the FDIC, to hinder digital asset companies from securing banking services.

Silicon Valley firms have reported similar issues, suggesting political targeting as a driving force behind the pattern.

> “The actions taken by Capital One and other major financial institutions represent a dangerous precedent that could threaten the operations of countless businesses across the nation, particularly those with a strong and independent voice.”
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> — Eric Trump on Capital One lawsuit

The Trump Organization’s lawsuit arises amid ongoing inquiries by tech entrepreneurs and crypto leaders into the matter of debanking. Lawmakers have convened hearings on the issue, with Federal Reserve Chair Jerome Powell expressing support for efforts against debanking practices.

Additionally, Republican Senator Cynthia Lummis from Wyoming has threatened federal prosecution against FDIC personnel reportedly involved in destroying evidence related to Operation Choke Point 2.0 and the debanking allegations.

While the lawsuit against Capital One may not directly pertain to crypto, Long believes it could highlight broader malpractice related to U.S. banking oversight.

Up to this point, inquiries into crypto debanking have primarily focused on banks regulated by the FDIC and the Federal Reserve. Long argues that the Trump Organization’s lawsuit could expand the investigation to include potential oversight issues from the Office of the Comptroller of the Currency (OCC).

> “The bank sued by the Trumps is an OCC-regulated bank w/ a Fed-regulated holding co. So far, most #debanking info that has come out publicly is from the FDIC & Fed (through FOIA & lawsuits), but if this new lawsuit reaches discovery then OCC debanking info could come out too.”
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> — Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) March 7, 2025

Read more: $FDIC releases documents related to crypto debanking$