FDIC Still Trying to ‘Stonewall’ Crypto Debanking Documents, Says Coinbase Legal Chief

The Federal Deposit Insurance Corporation deliberately blocks the efforts to expose operation ChokePoint 2.0 documents, despite judicial commanding disclosure, Coinbase Expect in the federal court on Tuesday that accuse the bank regulator of systematic obstruction.

Paul Grewal, Chief Legal Officer of Coinbase, unveiled the submission in a series tweetsSaying that “FDIC staff remains our efforts to shed light on the ChokePoint 2.0 operation of the previous administration. We can’t stand it.”

The crypto exchange has one Opposition And Motion for extra discovery In the federal court, challenging the FDIC attempts to dismiss their Freedom of Information Act (FOIA) lawsuit that pauses “breaks the FDIC to banks and ordered them to stop crypto-related activities.

With the Trump administration that enables in crypto-friendly policy, the exposure of this alleged “historical misdeeds” is necessary so that they never happen again, “tweeted Grewal.

What is Operation ChokePoint 2.0?

The FDIC -Controverse has increased concern that regulators have marginalized crypto companies by cutting off access to banking, which the industry calls “Operation ChokePoint 2.0”.

Coinbase’s opposition letter Details how the FDIC’s appeal letter acknowledged that her “decision to keep in was based on finding that the type of requested archives would be exempt, instead of taking exemption provisions based on document.”

The submission shows that it needed four judicial orders and six productions for the FDIC to identify and produce all documents that respond to the relatively narrow breaker request.

The internal FDIC policy that was obtained during the process for sharing information exclusion shows that the Agency instructs personnel that every document that falls under FOIA exemption 8 must be “fully in” withheld “[n]o duty to actually separate from analytical or deliberative material. “

The Discovery Motion asks the court to force the FDIC to provide sworn testimonials from the agency officials about their document trading procedures and to transfer all denial letters sent to other FOIA applicants between 2020 and 2024 when the Agency Bank records.

The opposition letter also reveals that the FDIC had an “incredibly narrow illogical picture” of the FOIA request from Coinbase, according to the presiding court, which initially limits the searches to only documents “shared with the OIG” instead of all break breaks described in the report of the inspector general.

This scary interpretation led the agency to miss countless responsive documents.

In January legal proceedings, the FDIC allowed It had no lawsuits or policy for storing records in Foia cases, and documents released the following month showed that banks that wanted to work with crypto companies were “almost universal resistance,” said the perception of the agency.

Coinbase’s legal fight has already forced the FDIC to release hundreds of pages that reveal clear efforts to discourage banks to serve crypto companies.