A D.C. federal judge has criticized the FDIC’s interpretation of a court order related to releasing documents on a cryptocurrency policy matter. Judge Ana Reyes called the agency’s position “almost laughable” during a hearing transcript released by plaintiffs on Thursday.
The case involves History Associates vs. the FDIC, with Coinbase playing a key role in seeking documents related to the FDIC’s ordering banks to pause various activities related to cryptocurrency. Under new leadership, hundreds of additional pages were released this week, revealing new details not previously seen.
Whistleblowers have allegedly contacted Sen. Cynthia Lummis (R.-Wyo.), claiming that relevant documents were destroyed between administrations. The hearing transcript revealed the FDIC never placed a legal hold on documents relevant to the FOIA lawsuit.
Judge Reyes warned the agency that if it cannot reliably prove relevant documents were preserved, it will face sanctions from the court. She also ordered the FDIC to prepare someone to offer an oral deposition on behalf of the agency regarding how they handled relevant documents in the case.
The outcome of this deposition, which has not yet taken place, is being closely watched as it relates to the broader issue of perceived widespread debanking of crypto companies and allegations of unfair treatment by regulators.
Source: https://www.axios.com/2025/02/06/coinbase-fdic-sanctions-crypto