Senator Lummis Threatens Criminal Action Against FDIC Staff Destroying Crypto Crackdown Docs

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Senator Cynthia Lummis has warned she will make criminal accusations against Federal Deposit Insurance Corporation employees suspected of destroying papers related to “Operation Choke Point 2.0.”

Informants at the Federal Deposit Insurance Corporation (FDIC) in the United States have raised concerns to decision-makers about suspected attempts inside the agency to conceal and eliminate data related to a supposed effort they’ve been called the “anti-cryptocurrency campaign” by industry supporters.

Operation Choke Point 2.0 (OCP 2.0) represents a collaborative effort among multiple agencies aimed at tightening the screws on cryptocurrency businesses. The main objective is to limit or prevent this emerging market from gaining access to traditional banking services.

In a January 16th correspondence sent to Martin Gruenberg, the Chair of the Federal Deposit Insurance Corporation (FDIC), Senator Cynthia Lummis from Wyoming cautioned FDIC personnel about altering records pertaining to OCP 2.0.

Lummis vowed to submit criminal referrals for individuals implicated in the accusations and urged for the conservation of all pertinent documents, even those concerning the liquidation processes of Signature Bank and Silvergate Bank. It’s worth noting that Gruenberg has already stepped down before the arrival of the new Trump administration.

Additionally, I’ve received reports from confidential sources that management is closely monitoring and restricting access to these documents to prevent them from being given to the Senate before they can be destroyed. Some employees have even been threatened with legal action if they speak out about this. This behavior is unlawful and intolerable. I instruct you to immediately halt the destruction of all materials and cease any retaliatory actions. If it’s discovered that you or your team have intentionally destroyed documents or tried to hinder the Senate’s investigative functions, such actions will promptly lead to criminal charges being filed with the U.S. Department of Justice.

Senator Cynthia Lummis to FDIC chair Marty Gruenberg

As I delve into these findings once more, I can’t help but feel a sense of profound satisfaction. The pursuit of justice has been a two-year journey, one filled with challenges and uncertainties. But today, I stand here, on the cusp of revelation, confident that the truth will soon be ours.

— nic carter (@nic__carter) January 16, 2025

In my role as a researcher, I’ve been closely following the heated debate surrounding the release of OCP 2.0-related documents, particularly between the Federal Deposit Insurance Corporation (FDIC) and participants within the cryptocurrency sector. Notably, industry leaders such as Coinbase have taken legal action against the agency, seeking access to certain files, including a document often referred to as the “pause letter.” This letter, allegedly, instructed financial institutions to cease their relationships with crypto businesses, a move that has sparked controversy within the industry.

The judge instructed the Federal Deposit Insurance Corporation (FDIC) to deliver all necessary documents. Yet, Coinbase contended that the disclosed data contained extensive redactions.

In a fresh rebuke, another judicial decree criticized the federal agency for dishonest actions concerning the case and mandated that the FDIC be completely transparent. The recent disclosure from the FDIC suggested an effort to conceal OCP 2.0, as the agency unexpectedly shared additional documents following the court’s examination, as stated by Coinbase’s Chief Legal Officer Paul Grewal.

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2025-01-16 22:26