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- Senator Cynthia Lummis has accused the Federal Deposit Insurance Corporation (FDIC) of destroying documents related to digital asset activities
- Whistleblowers claim FDIC management has threatened staff to prevent them from sharing information with the Senate
- The Senator has warned of criminal referrals if document destruction or obstruction continues
Senator Cynthia Lummis has raised serious concerns about alleged document destruction within the Federal Deposit Insurance Corporation (FDIC). In a sharply worded letter to FDIC Chair Marty Gruenberg, Senator Lummis claims whistleblowers have reported illegal practices, including threats against staff and attempts to conceal information related to the FDIC’s involvement in digital asset activities. In the letter dated January 16, Lummis demands the immediate cessation of these actions and preservation of all relevant materials.
Allegations of Illegal Activity
In the letter, Lummis states that she has been “informed by whistleblowers that staff access to these materials is being closely monitored by management… and that certain staff have been threatened with legal action to prevent them from speaking out.”
Lummis adds that these actions are both “illegal and unacceptable” and states that such documents should instead be preserved. The scope of requested documents is broad, including records related to the supervision and resolution of Signature Bank and Silvergate Bank, as well as any communications, policies, or enforcement actions regarding digital assets. Lummis clarified that materials involving terms like “cryptocurrency,” “bitcoin,” and “ethereum” must be retained.
A Demand for Transparency
In addition to making the demand for retention, Senator Lummis reminded Gruenberg of the Senate’s oversight powers:
If it is uncovered that you or your staff have knowingly destroyed materials or sought to obstruct the oversight functions of the Senate, I will make swift criminal referrals to the U.S. Department of Justice.
Lummis cited federal statutes on obstruction and document destruction to back up her warning, in a sign of growing tensions between regulatory agencies and lawmakers over the oversight of digital assets.
The allegations against the FDIC could have significant ramifications, particularly as Congress intensifies scrutiny of how federal agencies handle cryptocurrency and related technologies. Whether the FDIC complies with Senator Lummis’s demands or faces further investigations will be pivotal in shaping this debate.
The post Senator Lummis Demands FDIC Halt Alleged Document Destruction appeared first on FullyCrypto.