Pro-Crypto Lawyer John Deaton Offers to Lead Probe into Alleged 'Operation Chokepoint 2.0'

John Deaton, a prominent pro-crypto lawyer and former U.S. prosecutor, has offered to lead an investigation into the controversial and unconfirmed initiative known as Operation Chokepoint 2.0. This initiative is rumored to have been aimed at cutting crypto companies off from traditional banking services, potentially stifling innovation in the cryptocurrency industry.

In a January 4 post on X (formerly Twitter), Deaton addressed incoming U.S. President Donald Trump, Vice President JD Vance, and key members of the government, including Elon Musk and Vivek Ramaswamy. Deaton warned that failing to investigate the alleged operation could set a dangerous precedent, where regulatory bodies could suppress entire industries they deem unfavorable, creating an environment that stifles competition and economic opportunity.

"If these actions go unchallenged, it creates a dangerous precedent where regulatory bodies can quietly suppress entire industries they disfavor, stifling innovation, competition, and economic opportunity," Deaton wrote. "This isn’t just a fight for crypto, it’s a fight against the erosion of institutional integrity and the unchecked power of unelected bureaucrats."

The post also tagged key figures, including Secretary of Commerce Howard Lutnik and David Sacks, who will lead Trump’s new initiatives in AI and cryptocurrency. Deaton, well-known for his advocacy in the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), further stated he was willing to take on the task without compensation, emphasizing that the truth was more important than a government paycheck. "The American people deserve the truth a hell of a lot more than I or anyone else needs another taxpayer-funded paycheck," he said.

Deaton's offer comes in the wake of a court ruling that granted the cryptocurrency exchange Coinbase access to unredacted files from the Federal Deposit Insurance Corporation (FDIC). The documents are central to Coinbase’s ongoing investigation into Operation Chokepoint 2.0, which allegedly involved efforts to pressure financial institutions to deny services to crypto firms. According to Coinbase's Chief Legal Officer Paul Grewal, the files revealed a coordinated attempt to block a range of crypto-related activities, from basic Bitcoin transactions to more advanced offerings.

The operation is believed to have played a role in creating significant obstacles for crypto firms. Notably, after the collapse of Silvergate and Signature Bank in March 2023, crypto exchanges such as Binance reportedly found themselves without local banking partners.

Deaton’s call for an investigation into Operation Chokepoint 2.0 comes after his defeat in the Massachusetts Senate race in November 2025, where he lost to Democrat Senator Elizabeth Warren. During the campaign, Deaton had strongly criticized Warren for leading an “anti-crypto army” rather than focusing on issues that affect the state’s lower and middle classes.

The allegations surrounding Operation Chokepoint 2.0 have raised concerns among cryptocurrency advocates, who argue that government interference in the banking relationships of crypto firms could be harmful to the industry’s growth and the broader economy. As Deaton prepares to take a stand, his call for transparency and accountability in the face of alleged regulatory overreach is gaining attention from both supporters and critics of the crypto sector.