- Senator Lummis accuses FDIC of destroying materials related to cryptocurrency oversight and threatening whistleblowers.
- FDIC allegedly monitored staff access to prevent Senate disclosures about “Operation Chokepoint 2.0”.
- Whistleblowers report systematic efforts to restrict cryptocurrency firms’ access to banking services.
- FOIA documents reveal FDIC directed banks to halt crypto-related activities in 2022.
- Senator demands preservation of all digital asset-related records since January 2022.
Senator Cynthia Lummis (R-WY) has confronted the Federal Deposit Insurance Corporation (FDIC) over allegations of document destruction and whistleblower intimidation related to cryptocurrency oversight. The accusations center on the agency’s reported attempts to restrict digital asset firms’ access to banking services.
Whistleblower Allegations and Document Preservation
In a letter addressed to FDIC Chair Marty Gruenberg, Lummis detailed claims from agency insiders about the destruction of materials connected to cryptocurrency operations. The Senator emphasized the potential legal consequences, stating, "The FDIC’s alleged actions are unacceptable and illegal."
The investigation focuses on materials related to Signature Bank, Silvergate Bank, and various cryptocurrency enforcement actions. Lummis has instructed the FDIC to maintain all records of communications with other federal banking agencies regarding digital assets since January 2022.
Operation Chokepoint 2.0 Investigation
The controversy surrounds "Operation Chokepoint 2.0," named after a similar Obama-era initiative that targeted specific industries through banking restrictions. Recent documents obtained through Freedom of Information Act requests by Coinbase showed the FDIC’s 2022 directive for banks to suspend cryptocurrency-related activities.
Brian Armstrong, CEO of Coinbase, and Caitlin Long, CEO of Custodia Bank, have reported instances of financial service termination without explanation, supporting claims of systematic banking restrictions against cryptocurrency companies.
Legislative Response and Oversight
Banking Committee Chair Tim Scott has joined Lummis in investigating these allegations. The Senator announced potential criminal referrals to the Department of Justice if evidence emerges of obstruction or intentional destruction of materials.
Cryptocurrency attorney John Deaton characterized the situation as regulatory overreach, stating, "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 FDIC has not yet responded to inquiries about these allegations.
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