JPMorgan Boycott Gains Traction Amid Epstein Scrutiny and MicroStrategy Index Shift

Is a major Wall Street bank’s past entanglements and current market moves sparking a broader revolt in the crypto community?

Rising Tensions in Crypto and Traditional Finance

The cryptocurrency sector is witnessing heightened friction with traditional banking giants, as a social media-driven boycott against JPMorgan Chase escalates. This movement, fueled by allegations of institutional bias against Bitcoin-focused companies, coincides with fresh revelations about the bank’s historical handling of high-profile client Jeffrey Epstein. As of late November 2025, reports indicate thousands of users are closing accounts and withdrawing funds, amplifying calls for accountability in both regulatory and market spheres.

MicroStrategy Index Reclassification Sparks Outflow Concerns

A proposed overhaul by index provider MSCI is at the center of the controversy, targeting firms with significant cryptocurrency holdings. MicroStrategy, rebranded as Strategy and a prominent Bitcoin treasury holder, faces potential exclusion from major indexes starting January 2026. This reclassification could reposition such companies as investment funds rather than traditional equities, prompting passive investment vehicles to divest.

• JPMorgan’s research highlights that the initial impact on Strategy alone could trigger outflows of approximately $2.8 billion.
• If other index providers adopt similar measures, total sector-wide outflows might climb to $8.8 billion, potentially pressuring Bitcoin prices and related equities.
• Strategy’s stock (MSTR) has traded at a premium to its Bitcoin holdings, with market capitalization reflecting investor optimism in crypto adoption; a forced rebalancing could erode this premium by 20-30%, based on historical index adjustment precedents.

Epstein Ties Resurface, Fueling Broader Backlash

Compounding the index dispute, newly analyzed Senate documents have reignited scrutiny of JPMorgan’s decade-long relationship with Jeffrey Epstein.

The bank processed over 4,700 transactions totaling more than $1 billion linked to Epstein and his associates, including transfers to Russian banks, as detailed in a 2019 suspicious activity report (SAR) filed post-Epstein’s death.

• While Epstein was a client until 2013, JPMorgan reported only a handful of red flags during his lifetime, totaling slightly over $4.3 million in suspicious activity.
• Posthumously, disclosures ballooned to nearly $1.3 billion across a decade—nearly 300 times the prior amount—raising questions about delayed compliance.
• Senator Ron Wyden’s review, released last week, accuses the bank of shielding Epstein, noting executives allegedly ignored alarms, withheld money laundering evidence, and advised on obscuring large cash withdrawals.