Coinbase accuses FDIC of stalling its Crypto Debanking Document release

Coinbase has legally challenged the Federal Deposit Insurance Corporation (FDIC) latest attempt to delay the release of major documents related to the Crypto Firms allegations.

On April 10, the exchange opposed a request for a 16-day extension of FDIC in response to the Freedom of Information Act (FOIA) lawsuit.

Paul Grawal, the company's chief justice officer, called the request “absurd,” emphasizing that FDIC had submitted 13 pages to ask for more time to determine if there was more delay.

He wrote:

“The FDIC had just filed 13 pages in the FOIA lawsuit and we asked the court for another 16 days to decide whether to ask for more delays. This is ridiculous, as laid out in our response.”

Coinbase accused the FDIC of stalling and failing to fulfill its obligations under the FOIA in court filings. The exchange argued that the institution's compiled documents were so violently censored that they did not provide meaningful insights.

He also challenged the claim that FDIC's new response deadline is May 2nd. It states that the actual deadline is April 16th. According to Coinbase, FDIC is trying to avoid legal liability by misinterpreting FOIA deadlines.

This legitimate fight is part of Coinbase's broader efforts to expose the government's role in code dropouts.

Earlier this year, court order disclosures revealed hundreds of pages of internal FDIC documents. It showed that the institution has put pressure on US banks to cut ties with digital asset companies.

Some banks were told to stop services to crypto companies until they received regulatory clearance, while others were warned of reputational risks associated with their involvement with the sector.

However, Coinbase believes that these disclosures are merely scratching the surface and that the company is significantly promoting more transparency in order to fully understand the full extent of the role of FDIC in crypto-decanking.

Meanwhile, FDIC has recently worked closer to the crypto industry, revoking some anti-crypto regulations and taking steps to tackle a more transparent framework for US banks engaged in digital assets.

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