Senator Cynthia Lummis has threatened criminal referrals for FDIC staff allegedly involved in destroying documents linked to “Operation Choke Point 2.0.”
Whistleblowers at the U.S. Federal Deposit Insurance Corporation have alerted policymakers to alleged efforts within the agency to withhold and destroy information regarding what industry advocates have dubbed an anti-crypto campaign.
The initiative, referred to as “Operation Choke Point 2.0” (OCP 2.0), involves a multi-agency crackdown on crypto businesses, with the primary goal of denying the nascent sector access to banking services.
In a Jan. 16 letter addressed FDIC Chair Marty Gruenberg, Senator Cynthia Lummis of Wyoming warned agency staff against tampering with documents related to OCP 2.0.
Lummis promised criminal referrals for anyone found involved in the allegations and demanded the preservation of all relevant materials, including those related to the wind-downs of Signature Bank and Silvergate Bank. Notably, Gruenberg has already announced his resignation ahead of the incoming Trump administration.
I have also been informed by whistleblowers that staff access to these materials is being closely monitored by management to prevent them from being supplied to the Senate before they can be destroyed and that certain staff have been threatened with legal action to prevent them from speaking out. This is illegal and unacceptable. You are directed to ensure your staff cease and desist destruction of all materials and end all retaliatory actions immediately… If it is uncovered that you or your staff have knowingly destroyed materials or sought to obstruct the oversight functions of the Senate, it will result in swift criminal referrals1 to the U.S. Department of Justice.
Senator Cynthia Lummis to FDIC chair Marty Gruenberg
The battle over OCP 2.0-related documents has been a contentious issue between the FDIC and crypto participants. Giants like Coinbase have sued the agency for access to files, including the so-called “pause letter,” which allegedly directed financial institutions to “de-bank” crypto businesses.
A judge ordered the FDIC to submit the relevant documents. However, Coinbase argued that the provided information was heavily redacted.
A second court order chastised the federal agency for bad faith practices related to the case and demanded that the FDIC engage in full cooperation. The latest turnover from the FDIC revealed an attempt to cover up OCP 2.0 as the agency surprisingly released more documents after the court’s scrutiny, according to Coinbase CLO Paul Grewal.
