I think this situation, while extremely unfortunate, is just the natural consequences of how banks are regulated in the US. The big banks face a constant threat

I think this situation, while extremely unfortunate, is just the natural consequences of how banks are regulated in the US. The big banks face a constant threat by the government: if your customer does something illegal with your product, YOU will be fined millions of dollars. Therefore, if your activities have any resemblance of money laundering, they'd rather lose your business than lose millions. Different banks have different "sensitivity", and Chase, unfortunately, is one of the more sensitive ones. What are the solutions? Laws should be passed to protect customers' rights in the event of an account closure; banks should probably be provided some safe harbor so they aren't as skittish; and in the meantime, bank with a smaller credit union that have a smaller target on their back, and also if something breaks you can yell at someone who can actually fix it.