Coinbase is escalating its legal battle against the FDIC, demanding sworn testimony over its alleged role in Operation Chokepoint 2.0, a campaign to restrict crypto firms’ banking access. Learn more about the latest developments in Coinbase’s fight for transparency.
Crypto Exchange Escalates Legal Efforts Over Alleged Government De-Banking Campaign
Coinbase is intensifying its legal battle against U.S. government agencies, demanding sworn testimony from the Federal Deposit Insurance Corporation (FDIC) regarding its involvement in Operation Chokepoint 2.0. The exchange claims the FDIC has failed to provide transparency, releasing heavily redacted documents that offer little insight into its alleged role in restricting crypto firms’ access to banking services.
Coinbase Accuses FDIC of Obstructing Transparency
Paul Grewal, Coinbase’s chief legal officer, announced on social media that the company is escalating its discovery efforts. Initially, Coinbase sought detailed records, but due to limited disclosure, the exchange is now calling for official sworn statements to uncover the FDIC’s actions.
“Enough is enough,” Grewal wrote. “In our latest status report to the Court, we lay out why we need sworn testimony now.”
Coinbase argues that the FDIC’s leadership is resisting full disclosure of its involvement in Operation Chokepoint 2.0, a campaign that allegedly sought to limit the banking access of cryptocurrency companies. The agency’s failure to provide unredacted documents has raised further suspicion, with 53 pages fully blacked out and others so heavily censored that their contents remain unclear.
Coinbase’s Fight Against Regulatory Scrutiny
The push for FDIC testimony is part of Coinbase’s broader efforts to bring transparency to government actions against the crypto industry. The exchange previously filed a Freedom of Information Act (FOIA) request to uncover how much taxpayer money had been spent on legal actions against crypto firms.
This latest move follows Coinbase’s legal battles with the Securities and Exchange Commission (SEC), which accused the exchange of selling unregistered securities. While some charges were later dropped, Coinbase remains committed to challenging what it sees as government overreach in regulating the industry.
What’s Next?
Coinbase’s demand for sworn testimony could lead to a deeper legal confrontation if the FDIC continues to withhold information. If the court grants the request, key officials may be required to testify under oath, potentially exposing details about the FDIC’s role in restricting banking access for crypto firms.
As the case unfolds, the crypto industry is watching closely to see whether Coinbase’s efforts will shed light on alleged government interference or if regulators will maintain their secrecy.
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