Recent reports from COINOTAG, dated January 9th, indicate that multiple whistleblowers from the United States Federal Deposit Insurance Corporation (FDIC) have uncovered alarming practices surrounding Operation Chokepoint 2.0, aimed at regulating the crypto industry. Insiders allege that the FDIC engaged in a variety of tactics to circumvent Freedom of Information Act (FOIA) requirements. This includes improperly designating documents as attorney-client privileged, performing inadequately thorough searches in their regional database, and concealing files created on platforms like Microsoft Teams. Reports suggest that around 150 critical documents were not disclosed during these processes.
Moreover, the FDIC is under scrutiny for executing social media investigations on prominent figures in the cryptocurrency sector. Notable individuals such as Coinbase’s Chief Legal Officer Paul Grewal and Custodia Bank founder Caitlin Long, among others, have come under the agency’s radar. Insiders have indicated that they were tasked with assessing whether these individuals posed any risk to the FDIC’s mission.