Trump Ally Threatens Action If FDIC's Alleged 'Destruction' Of Crypto Choke Point Documents Proven

Operation Choke Point 2.0 (OCP 2.0) has been a lingering concern in the cryptocurrency space in recent weeks and on Thursday, Sen. Cynthia Lummis, R-Wyo., sent a letter to the Federal Deposit Insurance Corporation (FDIC) to inquire about an allegation made by whistleblowers regarding the said operation.

In her letter, Lummis, a staunch ally of incoming U.S. President Donald Trump, revealed that whistleblowers alleged the FDIC destroyed materials related to the agency's "digital asset activities."

Lummis Wants All FDIC Crypto Documents Preserved

The Republican senator went on to reveal that whistleblowers informed her FDIC "staff access to these materials is being closely monitored by management to prevent them from being supplied to the Senate before they can be destroyed, and that certain staff have been threatened with legal action to prevent them from speaking out."

Lummis noted that such actions are illegal and unacceptable and the agency should ensure that FDIC staff stop the destruction of all materials related to the agency's crypto activities. She also instructed the agency to "end all retaliatory actions immediately."

She asked the FDIC to preserve all materials related to the agency's crypto activities from Jan. 1, 2022, including electronic data, communications, documents and metadata that "may be responsive to the Senate Banking Committee's oversight prerogatives in the coming months."

The following terms have been defined as words related to "digital asset" and documents containing them should be preserved:

• Crypto
• Crypto asset
• Crypto-asset
• Cryptocurrency
• Virtual currency
• Virtual asset
• Bitcoin
• Ethereum
• Digital asset

Lummis Threatens 'Criminal Referrals' to DOJ

Lummis, who is poised to lead the Senate Banking Committee's newly created digital asset subcommittee, warned in a statement Thursday that she and Sen. Tim Scott, R-S.C., who is also the incoming Senate Banking Committee Chair, will work together to get to the bottom of OCP 2.0.

"The FDIC is attempting to hide Operation Chokepoint 2.0," she said, referring to the alleged coordinated activities by the Biden administration to discourage banks to work with digital asset firms, including the alleged "debanking" of crypto executives.

She also warned in her letter that if it is determined the FDIC and its staff "knowingly destroyed materials" related to the issue or attempted to obstruct the Senate's oversight mandate over the agency, "I will make swift criminal referrals to the U.S. Department of Justice."

Coinbase Unveils OCP 2.0 'Proof'

The warning from a leading U.S. senator came on the heels of the revelation through a court order of letters sent by the FDIC to American banks that discouraged them from engaging in a wide range of crypto dealings, including basic Bitcoin transactions.

Crypto exchange giant Coinbase obtained a total of 25 letters, with some being almost entirely unredacted, showing the extent to which the agency attempted to prevent banks from engaging in digital asset transactions or offerings.

Coinbase Chief Legal Officer Paul Grewal said at the time that the letters showed "a coordinate effort to stop a wide variety of crypto activity."

The FDIC has yet to issue a statement on Lummis's latest move.

Originally published on IBTimes