Capital One Closes Trump Org Accounts Over Money Laundering Concerns
Capital One has shut down over 300 Trump Organization accounts following a months-long review by its anti-money laundering (AML) team. The bank is seeking to dismiss a lawsuit filed by the Trump Organization and Eric Trump, claiming the allegations of political debanking are 'misguided'.
The types of transaction patterns identified by Capital One 'are among the types of activity flagged by federal banking guidance,' but the bank has not accused the Trump Organization of illegal money laundering. Instead, it is only making the AML review public now as a result of the litigation.
This move marks the first time a bank has formally tied money laundering concerns to U.S. President Donald Trump's family business. The Trump Organization and Eric Trump had alleged that Capital One shut down the accounts in March 2021 due to 'woke' beliefs and an attempt to take advantage of the political moment after the January 6, 2021 Capitol riot.
Crypto holdings associated with Trump have also been affected by this development. His disclosed cryptocurrency holdings include a 38.25% economic interest in World Liberty Financial (WLFI) and over $50 million in Bitcoin (BTC) held in cold storage, which have lost an estimated $44.4 million in paper value.