Coinbase CLO Slams FDIC for ‘absurd’ delays in crypto deBanking Records lawsuit

In a court application on Thursday, Coinbase opposed a 16-day extension request from the Federal Deposit Insurance Corporation (FDIC) to delay its response in a public archiving about documents bound to the alleged debt From crypto companies.

The case focuses on internal communication that Coinbase believes that the agency has applied a secret campaign, called ‘Operation ChokePoint 2.0‘To isolate crypto of the American financial system.

Coinbase Chief Legal Officer Paul Grewal pushed back on the treatment of the FDIC’s request as a standard procedure and mentioned the request of the office ‘Absurd’ in an X after On Thursday.

The FDIC did not respond immediately Decrypts Request for comments. Decrypt has assessed the submission of Grewal below, but still has to verify independently.

Coinbase argues that the deadline of the FDIC is on 16 April, not 2 May, as the desk claims in its own motion.

The crypto exchange said that the agency is trying to “avoid its legal obligations” and called the extension “unjustified”.

Coinbase also said that the FDIC had months to prepare and had already said that it only needed 30 days after the stay to submit a motion to dismiss.

That motion, Coinbase noted, only requires a pre-motion knowledge of four pages, much shorter than the 13-page extension request itself.

“The interpretation of the Bureau of De Standaard Deadline is legally incorrect,” wrote Coinbase, adding the agency does not show “good reason” for the requested extension.

The court of court is part of the growing control of the FDIC is confronted About whether it helped to coordinate an informal campaign to deflect crypto companies without public regulations or Congress Supervision.

Documents and more documents

In February, the office issued Almost 800 pages of Internal documentsAfter pressure from Coinbase and judicial orders, which showed how banks were discouraged from offering services to companies involved in digital assets.

Some were told that they stopped the activity until regulators thought it was ‘safe and healthy’, while others received warnings about ‘reputation risk’ linked to crypto, even in the absence of worries about financial system.

The disclosures fought long-term accusations that federal supervisors under the BIDEN administration tried to suppress the crypto industry by leaning on financial institutions behind closed doors.

Grewal characterized the movement as a “coordinated effort to stop a wide range of crypto activity.” At the same time, CEO has Brian Armstrong called The campaign “One of the most unethical and non-American things that took place in the Biden administration.”

The Huis Oversight Committee is now research Whether such tactics amounted to an incorrect debt of legal companies.

The laws have contacted Coinbase, Andreessen Horowitz and other market leaders, looking for documentation and testimony.

Published by Sebastian Sinclair