A consulting firm, History Associates, claims that the Federal Deposit Insurance Corporation (FDIC) is withholding dozens of “pause letters” requested during the discovery process in a lawsuit filed by crypto exchange Coinbase, according to Cointelegraph.

From March 2022 to May 2023, the FDIC sent “pause letters” urging banks to suspend certain crypto-related activities and requesting details such as cost analysis and marketing materials. According to public informants, the federal agency has allegedly been “systematically thwarting FOIA requests.” History Associates says the FDIC only referenced 25 letters in this case, while at least 150 documents remain undisclosed.

Coinbase’s chief legal officer, Paul Grewal, stated they were interested in all “pause letters” ever handled by the FDIC’s Office of Inspector General. However, FDIC staff limited their search to the period from March 2022 to May 2023.

A picture of deceit, obfuscation, and bad faith is coming into focus at @FDICgov. Today we’re reporting to the federal court that the agency once again stonewalled legitimate requests for information in our case, and that we’re moving to amend our FOIA complaint to address their…
— paulgrewal.eth (@iampaulgrewal) January 17, 2025

“When we asked them to correct their so-called ‘reasonable interpretation’ and stop playing games, they said it would take at least another year,” Grewal added.

The FDIC argues that History Associates lacks “reasonable grounds” to believe additional letters outside that timeframe were covered by the original FOIA request, although the agency is open to reviewing them if presented separately.

History Associates intends to amend its lawsuit with new allegations regarding the FDIC’s conduct.

Context

Earlier, Senator Cynthia Lummis of Wyoming threatened the FDIC with criminal charges if it had indeed destroyed any documents related to crypto oversight.
In June 2024, Coinbase sued both the SEC and FDIC, accusing them of trying to “cut the crypto industry off” from banking.
The exchange wants fully unredacted versions of the “pause letters” for clarity on their contents.