FDIC Scandal: Allegations of Crypto Industry Targeting and Whistleblower Protection
U.S. Senator Cynthia Lummis Calls for Investigation
U.S. Senator Cynthia Lummis (R-WY) has issued a scathing rebuke of the Federal Deposit Insurance Corporation (FDIC), alleging misconduct in the agency’s handling of digital asset oversight and threatening whistleblowers.
On Thursday, Lummis sent a letter to FDIC Chair Marty Gruenberg after whistleblowers alleged that the agency destroyed materials related to its crypto-related operations and threatened employees to silence them.
Letter Details Specific Concerns
The letter outlined several specific concerns, including:
– The destruction of materials related to Operation Chokepoint 2.0, a purported initiative to marginalize crypto firms by cutting off their access to banking services.
– The monitoring of staff access to sensitive materials to prevent Senate disclosures.
– The alleged threat to employees to silence them, potentially in violation of whistleblower protections.
Consequences for the FDIC
The senator warned that if the allegations are found to be true, she will seek criminal referrals to the Department of Justice for obstructing Senate oversight and knowingly destroying materials.
Operation Chokepoint 2.0: A Brief History
Background on Operation Chokepoint 1.0
Operation Chokepoint 1.0 was an initiative launched by the FDIC and other regulatory bodies in 2013 to pressure banks to cut ties with companies engaged in questionable business practices.
The program was aimed at disrupting illegal activities such as payday lending and firearms sales.
Operation Chokepoint 2.0: Allegations of Crypto Industry Targeting
Industry advocates claim that Operation Chokepoint 2.0 is a targeting of the crypto industry, employing similar tactics to marginalize an entire sector through backdoor regulatory measures.
Pro-crypto attorney John Deaton has called Operation Chokepoint 2.0 a clear example of regulatory overreach driven by political motives rather than sound policy.
Whistleblower Allegations and Investigations
The whistleblowers have alleged that the FDIC engaged in a concerted effort to undermine the crypto industry, including the destruction of documents and threats against employees who dared to speak out.
Senator Lummis has called for a thorough investigation into the allegations, vowing to pursue the truth and hold the FDIC accountable for any wrongdoing.
Conclusion
The allegations against the FDIC raise serious concerns about the agency’s handling of digital asset oversight and its commitment to transparency and accountability.
As the investigation continues, it remains to be seen whether the allegations will be proven or disproven, but the fact that the FDIC is under scrutiny for its actions is a significant development for the crypto industry and its supporters.
FAQs
Q: What is Operation Chokepoint 2.0?
Operation Chokepoint 2.0 is an alleged initiative by the FDIC to target the crypto industry by cutting off access to banking services and enforcing regulations in a way that favors certain companies over others.
Q: Who is responsible for the allegations?
Whistleblowers within the FDIC have made the allegations, and Senator Lummis has called for a thorough investigation into the matter.
Q: What are the consequences for the FDIC?
If the allegations are proven, Senator Lummis has threatened to seek criminal referrals to the Department of Justice for obstructing Senate oversight and knowingly destroying materials.
