Coinbase Secures FDIC Files, Exposing Operation Chokepoint 2.0  

• Coinbase obtains unredacted FDIC documents, revealing coordinated efforts to hinder crypto transactions across the banking sector. 
• Newly surfaced letters indicate the FDIC’s role in pressuring banks to halt services for crypto firms, fueling calls for deeper investigations. 
• Operation Chokepoint is in the pipeline to receive even more attention from upcoming laws and industry heads demanding explanations  

Cryptocurrency exchange Coinbase Global Inc. has received non-redacted papers from the Federal Deposit Insurance Corporation (FDIC) following a court order. This is a major step up in the company’s investigation into Operation Chokepoint 2.0, what the firm has described as its effort to target cryptocurrencies. This was verified by Coinbase’s Chief Legal Officer Paul Grewal who said that the files are now public. 

According to Grewal, the newly unveiled documents reveal a deliberate effort by the FDIC to obstruct cryptocurrency transactions. These restrictions extended from fundamental Bitcoin transfers to advanced blockchain-based services. This revelation follows the initial release of redacted documents in December, which offered limited insights into the extent of the operation. 

A federal judge recently mandated the FDIC to release unredacted versions of the documents after Coinbase challenged the agency under the Freedom of Information Act (FOIA). Grewal disclosed that the FDIC had also uncovered two previously undisclosed letters. These letters provide additional evidence of the commission instructing banks to suspend services for crypto firms, contradicting earlier claims of no such directives. 

Widening Impact of Operation Chokepoint 

The latest documents indicate the scope of Operation Chokepoint 2.0 within the banking sector. Industry stakeholders have expressed concerns about the broader implications of these restrictions on cryptocurrency businesses. Besides affecting transactions, these measures have reportedly targeted energy usage by Bitcoin miners, as revealed by Brian Morgenstern, a Riot Platforms executive. 

The unredacted FDIC files have intensified calls for an in-depth investigation into Operation Chokepoint. Industry leaders, including Coinbase’s Paul Grewal and Crypto Czar David Sacks, are advocating for transparency and accountability. Lawmakers such as Representative French Hill have also voiced their support for probing these regulatory measures. 

As the crypto industry continues to navigate regulatory challenges, these revelations underscore the urgency of addressing systemic barriers imposed by financial authorities. The incoming U.S. administration is expected to prioritize this issue, with a renewed focus on ensuring fair treatment for cryptocurrency enterprises.