Coinbase FOIA Requests Unearth More Instances of U.S. FDIC Asking Banks To ‘Pause’ Crypto Services

Main US crypto trade Coinbase’s Freedom of Info Act (FOIA) requests reveal extra instances the place the US Federal Deposit Insurance coverage Company (FDIC) has requested banks to freeze crypto companies.

In a brand new thread on social media platform

“The letters revealing Operation Chokepoint 2.0 weren’t simply one other crypto conspiracy idea. The FDIC nonetheless hides behind overly broad editorials. They usually nonetheless have not produced greater than a fraction of it.”

One instance within the paperwork reveals FDIC Assistant Regional Director Joseph A. Meade asking an unnamed financial institution in Dallas, Texas, to pause its crypto operations in 2022 as a result of the FDIC “has not decided what, if any, registrations shall be required for a financial institution to undertake one of these exercise.”

Caitlin Lengthy, the founder and CEO of crypto-friendly financial institution Custodia Financial institution, advised X that the FDIC’s actions have been covert methods to legally cripple law-abiding crypto establishments.

“These ‘pause letters’ are dated March 11, 2022 – two years and 9 months in the past… these weren’t ‘pause letters’ as a result of the pause was indefinite. These have been in actuality ‘stop and desist’ letters, cloaked in legalese, designed to crush law-abiding crypto.”

Final month, Grewal additionally uncovered 20 instances wherein the FDIC ordered banks to stop crypto operations with none proof that they’d dedicated crimes.

Coinbase sued the FDIC and the U.S. Securities and Change Fee (SEC) earlier this 12 months, claiming the companies have been attempting to undermine the crypto trade.

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