FDIC Under Fire for Allegedly Destroying Documents Concerning Crypto Regulation as Perclaimed by Cynthia Lummis
In a letter posted on Twitter on January 16, 2025, Senator Cynthia Lummis of Wyoming has raised concerns about the Federal Deposit Insurance Corporation (FDIC), alleging potential criminal proceedings. The letter, addressed to FDIC Chair Martin Gruenberg, accuses unnamed employees of destroying documents related to cryptocurrency oversight.
The demanded documentation includes oversight and resolution issues involving Signature Bank, the liquidation of Silvergate Bank, and supervision of all insured depository institutions that have offered or sought to offer digital asset services. Senator Lummis has also requested information on planned and executed enforcement actions connected to cryptocurrencies.
Lummis claims that certain employees have been threatened with legal action to deter them from speaking out about the alleged document destruction. She further alleges that FDIC leadership closely monitors staff access to these materials to prevent their delivery to the Senate before they are destroyed.
The letter references "Operation Choke Point 2.0," an alleged continuation of a U.S. Justice Department initiative from 2013 aimed at restricting banking services to certain sectors. This operation, if true, is now claimed to be targeting the crypto industry.
Notably, in August 2022, Senator Pat Toomey requested the FDIC confirm or deny allegations that it pressured banks over their partnerships with crypto companies. This request came after Coinbase, a major cryptocurrency exchange, sued both the SEC and FDIC over what it described as efforts to "cut the crypto industry off" from banking services.
In late 2024, Coinbase revealed agency letters from two years prior, urging financial institutions to halt transactions with digital assets. Senator Tim Scott is mentioned as being involved in the investigation alongside Senator Lummis.
As of July 25, 2025, there are no available search results or official reports indicating any ongoing criminal investigation into the FDIC for allegedly destroying documents related to cryptocurrency oversight. The recent regulatory updates involving the FDIC and other federal agencies pertain to clarifications on crypto-asset-related activities and regulatory frameworks, such as the withdrawal of prior joint statements on crypto risks and the enactment of the GENIUS Act. However, none of these updates mention any criminal investigations or allegations of document destruction by the FDIC.
If it is discovered that the FDIC Chair Martin Gruenberg or his staff deliberately destroyed materials or attempted to obstruct the Senate's oversight functions, Senator Lummis has threatened to refer the matter for criminal investigation to the U.S. Department of Justice. The FDIC has yet to respond publicly to these allegations.
- The ongoing controversy surrounding the FDIC deepens as Senator Lummis accuses unnamed employees of destroying cryptocurrency oversight documents, including those related to Signature Bank, the liquidation of Silvergate Bank, and digital asset services offered by other insured depository institutions.
- In the realm of finance and business, politics and general news, Senator Lummis's allegations of document destruction by the FDIC, if proven, could have serious implications, potentially leading to a criminal investigation.
- The recent revelation of agency letters from 2022, urging financial institutions to halt transactions with digital assets, raises concerns about potential collusion between the FDIC and other federal agencies regarding cryptocurrencies and their associated businesses, adding to the growing intrigue in the realm of crime and justice.