{"investigation":{"slug":"strike","entity_name":"Strike","trust_score":34,"severity_base":null,"score_modifier":-10,"confidence":0.72,"status":"published","content_type":"investigation","summary":"Strike (operated by Zap Solutions, Inc.) is a Bitcoin and Lightning Network payments application founded by Jack Mallers. The platform has faced scrutiny over a 2023 data breach it initially denied, the use of Tether (USDT) as a backing for purported USD cash balances for non-US users, and a 2026 proposed merger with Twenty One Capital (XXI) that raises serious conflict-of-interest concerns given Mallers serves as CEO of both entities.","sections":[{"content":"","heading":"","sources":[{"url":"https://strike.me/blog/strike-launches-global-money-app-to-3-billion-people-in-over-65-countries/","name":"Strike launches global money app to 3 billion people in over 65 countries","type":"official","credibility":1},{"url":"https://www.businesswire.com/news/home/20260305426748/en/Strike-Receives-BitLicense-and-Money-Transmitter-License-from-the-New-York-Department-of-Financial-Services","name":"Strike Receives BitLicense and Money Transmitter License from NYDFS — Business Wire","type":"regulatory","credibility":1},{"url":"https://www.innreg.com/resources/case-studies/strike","name":"Strike Establishes US Compliance Program with InnReg's Support","type":"other","credibility":2}],"severity":"medium"},{"content":"","heading":"","sources":[{"url":"https://protos.com/jack-mallers-strike-denied-an-email-breach-that-definitely-happened/","name":"Jack Mallers' Strike denied an email breach that definitely happened — Protos","type":"news_article","credibility":2},{"url":"https://www.theblock.co/post/260119/bitcoin-payments-app-strike-says-no-evidence-of-breach-amid-claims","name":"Bitcoin payments app Strike says no evidence of breach amid claims — The Block","type":"news_article","credibility":2},{"url":"https://crypto.news/strike-accused-of-alleged-data-breach/","name":"Strike accused of alleged data breach — Crypto News","type":"news_article","credibility":2},{"url":"https://beyondmachines.net/event_details/strike-reports-data-leak-of-customer-emails-after-initially-denying-any-issues-8-w-8-g-q","name":"Strike reports data leak of customer emails after initially denying any issues — Beyond Machines","type":"news_article","credibility":2}],"severity":"medium"},{"content":"","heading":"","sources":[{"url":"https://strike.me/en/faq/what-is-my-cash-or-usdt-balance-wr/","name":"What is my cash or USDT balance? — Strike FAQ","type":"official","credibility":1},{"url":"https://www.theblock.co/post/231714/strike-tether-bitcoin-payments","name":"Bitcoin payments app Strike integrates Tether's USDT stablecoin — The Block","type":"news_article","credibility":2},{"url":"https://bitcoinmagazine.com/business/strike-abandons-usdt-in-el-salvador","name":"With Bitcoin Clarity, El Salvador Allows Strike To Abandon USDT — Bitcoin Magazine","type":"news_article","credibility":2},{"url":"https://bitcoinmagazine.com/news/strike-ceo-jack-mallers-bitcoin-conference","name":"Strike CEO Jack Mallers Announces Lending Proof-of-Reserves and Backs Tether Merger Plan — Bitcoin Magazine","type":"news_article","credibility":2},{"url":"https://www.yahoo.com/now/strike-phasing-usdt-bitcoin-based-194516505.html","name":"Strike Is Phasing Out USDT From Bitcoin-Based El Salvador Remittances, CEO Says — Yahoo Finance","type":"news_article","credibility":2}],"severity":"medium"},{"content":"","heading":"","sources":[{"url":"https://strike.me/legal/licenses/","name":"Strike Licenses — Strike.me","type":"official","credibility":1},{"url":"https://www.coindesk.com/business/2026/03/06/strike-secures-new-york-bitlicense-opening-bitcoin-financial-services-to-state-residents","name":"Strike Receives BitLicense and Money Transmitter License from NYDFS — CoinDesk","type":"news_article","credibility":1},{"url":"https://www.innreg.com/resources/case-studies/strike","name":"Strike Establishes US Compliance Program with InnReg's Support","type":"other","credibility":2}],"severity":"medium"},{"content":"","heading":"","sources":[{"url":"https://www.theblock.co/post/380099/strike-jack-maller-jpmorgan","name":"JPMorgan Chase closes Strike CEO Jack Mallers' accounts — The Block","type":"news_article","credibility":2},{"url":"https://www.coindesk.com/business/2025/12/01/jpmorgan-and-strike-ceo-jack-mallers-go-silent-leave-debanking-questions-unanswered","name":"JPMorgan and Strike CEO Jack Mallers Go Silent, Leaving Debanking Questions Unanswered — CoinDesk","type":"news_article","credibility":1},{"url":"https://bitcoinmagazine.com/business/jack-mallers-debanked-by-jpmorgan","name":"Strike CEO Jack Mallers Debanked By JPMorgan — Bitcoin Magazine","type":"news_article","credibility":2}],"severity":"medium"},{"content":"","heading":"","sources":[{"url":"https://www.coindesk.com/markets/2026/04/29/jack-mallers-twenty-one-capital-surges-after-majority-holder-tether-proposes-3-way-merger","name":"XXI higher by 8% on merger plans with Strike and Elektron Energy — CoinDesk","type":"news_article","credibility":1},{"url":"https://finance.biggo.com/news/RhjM350BtCxy99G5-qax","name":"XXI Rallies on Tether-Backed Merger Plan — But CEO Jack Mallers Sits on Both Sides of the Table — BigGo Finance","type":"news_article","credibility":2},{"url":"https://tether.io/news/tether-investments-proposes-merger-plans-at-twenty-one-capital-to-accelerate-its-strategic-direction/","name":"Tether Investments Proposes Merger Plans at Twenty One Capital — Tether.io","type":"official","credibility":2},{"url":"https://unchainedcrypto.com/tether-proposes-three-way-merger-to-build-integrated-bitcoin-platform-around-twenty-one-capital-unchained/","name":"Tether Proposes Three-Way Merger to Build Integrated Bitcoin Platform — Unchained Crypto","type":"news_article","credibility":2},{"url":"https://www.theblock.co/post/353319/jack-mallers-bitcoin-payments-app-strike-is-moving-into-the-crypto-lending-business","name":"Jack Mallers' Bitcoin payments app Strike is moving into crypto lending — The Block","type":"news_article","credibility":2}],"severity":"medium"}],"timeline":[{"date":"2020","event":"Strike (Zap Solutions, Inc.) founded by Jack Mallers as a Bitcoin Lightning Network payments application.","source":"","source_url":"https://www.bitstamp.net/en-gb/learn/people-profiles/jack-mallers/","date_original":"2020-01-01"},{"date":"2021-06","event":"Strike supports El Salvador Bitcoin adoption; reliance on USDT draws criticism from Bitcoin community. Mallers says USDT will be phased out.","source":"","source_url":"https://www.yahoo.com/now/strike-phasing-usdt-bitcoin-based-194516505.html","date_original":"2021-06-01"},{"date":"2023-06","event":"Strike announces global expansion to over 65 countries, reaching approximately 3 billion potential users.","source":"","source_url":"https://strike.me/blog/strike-launches-global-money-app-to-3-billion-people-in-over-65-countries/","date_original":"2023-06-01"},{"date":"2023-10-31","event":"ZachXBT publishes evidence on Telegram of a Strike customer email data breach. Strike initially states 'There's no evidence that Strike was breached.' Within hours Strike reverses position, acknowledging a third-party vendor breach.","source":"","source_url":"https://protos.com/jack-mallers-strike-denied-an-email-breach-that-definitely-happened/"},{"date":"2023-11","event":"Strike confirms email list breach by third-party vendor to customers; phishing emails had targeted Strike users with scams mimicking Etherscan and OpenSea.","source":"","source_url":"https://www.theblock.co/post/260119/bitcoin-payments-app-strike-says-no-evidence-of-breach-amid-claims","date_original":"2023-11-01"},{"date":"2025-09-02","event":"JPMorgan Chase closes Jack Mallers' personal accounts, citing 'concerning activity' without elaboration.","source":"","source_url":"https://www.theblock.co/post/380099/strike-jack-maller-jpmorgan"},{"date":"2025-11-23","event":"Mallers publicly discloses JPMorgan account closure on social media, two months after the September letter.","source":"","source_url":"https://www.coindesk.com/business/2025/12/01/jpmorgan-and-strike-ceo-jack-mallers-go-silent-leave-debanking-questions-unanswered"},{"date":"2026-03-05","event":"Strike receives BitLicense and Money Transmitter License from NYDFS, completing licensure across all 50 U.S. states.","source":"","source_url":"https://www.businesswire.com/news/home/20260305426748/en/Strike-Receives-BitLicense-and-Money-Transmitter-License-from-the-New-York-Department-of-Financial-Services"},{"date":"2026-04-29","event":"Tether proposes three-way merger of Twenty One Capital (XXI), Strike, and Elektron Energy. Jack Mallers, CEO of both XXI and Strike, endorses the deal publicly the same day, raising conflict-of-interest concerns.","source":"","source_url":"https://www.coindesk.com/markets/2026/04/29/jack-mallers-twenty-one-capital-surges-after-majority-holder-tether-proposes-3-way-merger"}],"sources_used":[],"source_tags":["etherscan","zachxbt"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet","created_at":"2026-05-04T16:05:03.200288+00:00","updated_at":"2026-08-27T12:05:10.97+00:00"}}