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Senator Alleges FDIC Destroyed Evidence in Crypto Banking Crackdown Investigation

Wyoming senator alleges federal agency destroyed documents related to controversial banking program

  • Senator Cynthia Lummis reports FDIC allegedly destroyed documents related to Operation Chokepoint 2.0.
  • Whistleblowers informed Lummis about potential document destruction at the federal agency.
  • The investigation focuses on records concerning digital asset activities and bank supervision.
  • Specific attention directed to Signature Bank supervision and Silvergate Bank liquidation cases.
  • Operation Chokepoint 2.0 affected cryptocurrency firms’ access to banking services across multiple countries.

FDIC Under Scrutiny for Document Handling

Wyoming Senator Cynthia Lummis has issued a formal letter to the Federal Deposit Insurance Corporation following whistleblower reports about alleged destruction of documents connected to Operation Chokepoint 2.0, a controversial banking access restriction affecting cryptocurrency companies.

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Document Preservation Demands

The Senator’s directive specifically addresses records related to digital asset activities, with particular focus on the Signature Bank supervision and Silvergate Bank liquidation cases. In her communication, Lummis stated: "You must cease and desist destruction of all materials and end retaliatory actions immediately."

Operation Chokepoint 2.0 Impact

Operation Chokepoint 2.0 represents a systematic effort to restrict cryptocurrency companies’ access to traditional banking services. The initiative, which gained prominence during the 2024 U.S. election period, created significant obstacles for digital asset firms attempting to maintain banking relationships. Industry advocacy groups identified this as a primary concern, as it effectively limited cryptocurrency companies’ ability to conduct basic business operations through conventional financial channels.

The practice mirrors its predecessor, the original Operation Chokepoint, which targeted various legal but politically disfavored industries through regulatory pressure on financial institutions. This modern version specifically focuses on cryptocurrency-related businesses, raising questions about regulatory overreach and fair market access.

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