Coinbase’s chief legal officer Paul Grewal is accusing the Federal Deposit Insurance Corporation (FDIC) of stonewalling the top US-based crypto exchange’s request for public records.
In a new thread on the social media platform X, Grewal accuses the FDIC of being deceitful and refusing to hand over vital records pertaining to how the federal agency moved to prevent banks from offering crypto-related services.
Coinbase has been using the Freedom of Information Act (FOIA) to uncover instances of the FDIC asking banks to freeze crypto services, known as “pause letters,” but Grewal says they are not fully complying.
Coinbase-hired law firm History Associates has now filed a motion asking the federal court to intervene.
Says Grewal,
“A picture of deceit, obfuscation, and bad faith is coming into focus at FDIC. [This month] we’re reporting to the federal court that the agency once again stonewalled legitimate requests for information in our case and that we’re moving to amend our FOIA complaint to address their violations of law.
When we filed our original request, we asked for all pause letters that were identified by the Office of Inspector General. Without telling us or the court, FDIC limited their search for pause letters to only those ‘contained’ in the report – so other pause letters may exist.
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. Meanwhile, whistleblower reports of widespread misconduct at FDIC are growing louder and louder, with allegations of improperly labeling documents, refusing to search certain databases, and even spending tax-payer resources researching me. We asked FDIC about this, [but] they did not respond.”
Grewal vows not to let up on the pursuit of the information.
“I will not presume to speak for the Court or Congress. But if FDIC thinks they can win in a staring contest against Coinbase or the industry, they clearly underestimate us and our commitment to the law. We’re not going anywhere. And our lawyers aren’t going anywhere.”
Last month, Grewal said the information they received so far has confirmed the notion that the US government was attempting to undermine the digital asset industry.
“The letters that show Operation Chokepoint 2.0 wasn’t just some crypto conspiracy theory. FDIC is still hiding behind way overbroad redactions. And they still haven’t produced more than a fraction of them.”
One example included in the documents reveals FDIC assistant regional director Joseph Meade asked an unnamed bank in Dallas, Texas, to pause its crypto activities in 2022 because the FDIC “has not determined what, if any, regulatory filings will be necessary for a bank to engage in this type of activity.”
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