Whistleblowers accuse FDIC of covering up Operation Chokepoint 2.0 documents and running a disinformation campaign against crypto critics.
Whistleblowers Allege FDIC Coverup in Crypto Suppression Efforts
group of whistleblowers has accused the Federal Deposit Insurance Corporation (FDIC) of intentionally concealing documents related to its alleged crypto suppression campaign, Operation Chokepoint 2.0. These insiders claim the agency misused legal privileges and avoided full transparency in response to Freedom of Information Act (FOIA) requests.
According to the whistleblowers, the FDIC instructed staff to label sensitive documents as attorney-client privileged, thereby shielding them from public disclosure. They also allege the agency deliberately omitted documents stored on collaboration platforms like Microsoft Teams and failed to conduct comprehensive searches in regional systems.
These revelations come amidst FOIA requests filed by Coinbase, a major U.S. cryptocurrency exchange, which sought to uncover the FDIC’s actions in discouraging banks from adopting crypto-related services. Reports indicate that at least 150 documents linked to Operation Chokepoint 2.0 were excluded from the FOIA disclosures.
Disinformation Campaign Against Critics
In addition to the alleged coverup, the FDIC is accused of orchestrating a disinformation campaign targeting its critics. A social media account, “FDIC Exposed,” claims credible sources confirmed that the agency investigated individuals critical of its actions.
Prominent figures reportedly targeted include Coinbase CLO Paul Grewal, Custodia Bank founder Caitlin Long, and regulatory journalist Veronica Irwin. The campaign allegedly aimed to discredit these individuals and assess whether they posed threats to the agency.
FDIC Exposed criticized the use of public funds for such investigations, calling the practice “horrible, although not unsurprising.” The account has demanded the immediate freezing of records related to these investigations and called for the dismissal of officials involved in the alleged coverup.
Call for Accountability
The whistleblowers urge greater oversight of the FDIC’s operations and transparency in its handling of crypto-related issues. The allegations highlight concerns about regulatory overreach and the suppression of innovation in the crypto industry.
For further developments, follow ongoing investigations into these allegations.
