Coinbase Exposes FDIC’s Alleged Cover-Up of Operation Chokepoint 2.0 Documents

Coinbase drops a bombshell—accusing the FDIC of stonewalling transparency around 'Operation Chokepoint 2.0.' The crypto giant claims regulators are burying files that could expose coordinated pressure on digital asset firms.

Behind the curtain: A modern-day bank crackdown?

Sources suggest the FDIC's alleged document purge mirrors the 2013 'Operation Chokepoint' playbook—where regulators quietly squeezed banks to drop 'high-risk' clients. Now, crypto firms smell blood in the water as banking access mysteriously dries up.

The irony? While Washington debates crypto regulation, backroom tactics may already be deciding winners and losers. Typical finance—making rules while pretending they don't exist.

Coinbase Legal Chief: FDIC Still Stonewalling Crypto Docs

Coinbase’s Chief Legal Officer, Paul Grewal, made the legal move public on X (formerly Twitter), stating that the FDIC staff “continue to stonewall our efforts to shed light” on past efforts that, he claims, deliberately targeted the crypto industry.

“We can’t and won’t stand for it,” he wrote.

The dispute stems from concerns among crypto advocates that U.S. regulators used unofficial pressure tactics, mirroring the original Obama-era Operation Chokepoint, to push banks away from the crypto sector.

Grewal said these actions must be fully revealed to ensure “they never happen again.”

Court documents show the FDIC failed to conduct a document-by-document review of the requested materials and instead applied broad exemptions to withhold information.

The industry cannot afford to be complacent. Historic progress at the federal level is undeniable, but it is imperative that we uncover historic misdeeds so that THEY NEVER HAPPEN AGAIN. 3/6

It took four court orders and six separate document productions for the regulator to provide the relevant records, Coinbase’s legal team said.

Internal FDIC policies uncovered during the litigation show the agency instructs staff to fully withhold documents falling under FOIA Exemption 8, which protects confidential bank examination records.

The policy reportedly states there is “no duty to segregate factual from analytical or deliberative material.”

Coinbase is now asking the court to compel sworn testimony from FDIC officials about how they handled the documents and to turn over all FOIA denial letters issued between 2020 and 2024 involving similar records.

FDIC Narrowed Search, Missed Key Crypto Docs: Filing

The filing also highlights how the FDIC initially limited its search to documents shared with its Office of Inspector General (OIG), despite a broader reference to “pause letters” in the OIG’s report. This led to several responsive documents being missed entirely.

In a January court hearing, the FDIC admitted it lacked a formal litigation hold process for FOIA requests.

Documents later released in February revealed that banks interested in serving crypto firms were “almost universally met with resistance,” according to comments from the FDIC’s Acting Chair.

As reported, TIME has recognized Coinbase as one of 2025’s 100 Most Influential Companies, labeling the crypto exchange a “disruptor” for its significant role in shaping US digital asset policies and markets.

TIME noted the exchange as a key driver behind the industry’s policy efforts and predicted Coinbase could become the central hub for crypto trading in the US.

Beyond the US, Coinbase is broadening its reach in Europe, securing a license under the EU’s MiCA regulatory framework through Luxembourg’s financial regulator.