#FDIC Accused of Hiding Encrypted Letters#

The Federal Deposit Insurance Corporation (FDIC) has been accused of withholding multiple cryptocurrency-related "cease and desist" letters sent to banks in a Freedom of Information Act (FOIA) lawsuit supported by Coinbase. A report filed with the U.S. District Court for the District of Columbia on January 17 by History Associates, states that the FDIC "may have withheld other cease and desist letters" and plans to file new allegations in its lawsuit. Public whistleblowers allege that the FDIC is "systematically obstructing FOIA requests," resulting in the non-disclosure of at least 150 related documents. In its January 17 status report, the FDIC stated that it had complied with the FOIA requirements by submitting all relevant documents and conducting a thorough search of the letters shared with the Office of Inspector General from March 2022 to May 2023. Paul Grewal, Coinbase’s Chief Legal Officer, accused the FDIC of playing "word games" after the agency stated it had only searched for cease and desist letters within a specific time period. The accusations suggest that the FDIC may be concealing letters related to cryptocurrencies, raising concerns about whether the agency is transparently handling cryptocurrency regulation.