FDIC Faces Allegations of Withholding Crypto-Related Documents in Coinbase Lawsuit

The U.S. Federal Deposit Insurance Corporation (FDIC) is under scrutiny as new allegations suggest the agency may have withheld critical crypto-related documents in a lawsuit backed by Coinbase. The legal dispute stems from a Freedom of Information Act (FOIA) request seeking transparency on the FDIC’s so-called “pause letters,” which reportedly instructed banks to halt crypto-related operations.

In a status report filed on January 17, History Associates, a firm assisting Coinbase, accused the FDIC of “systematically thwarting FOIA requests.” The firm claims the agency failed to disclose at least 150 relevant documents, adding to concerns of intentional non-compliance. This revelation follows whistleblower allegations that the FDIC has a pattern of obstructing such requests.

Claims Shed New Light on “Pause Letters”

“When we asked them to fix their supposed reasonable interpretation and stop playing word games, they told us it would take at least a year,” Grewal remarked in a January 16 statement.

Possible Criminal Consequences

The case has drawn attention from policymakers, including Wyoming Senator Cynthia Lummis. In a letter dated January 16, Lummis warned the FDIC that destroying documents or obstructing the investigation could lead to criminal referrals to the Department of Justice.