YEREVAN (CoinChapter.com) — Leaked recordings suggest that the Federal Deposit Insurance Corporation (FDIC) targeted crypto businesses as part of Operation Chokepoint 2.0. Whistleblowers state that the recordings reveal agency officials mocking crypto advocates and strategizing to avoid scrutiny.
FDIC Scandal Whistleblowers. Source: FDICExposedCrypto companies, including Custodia Bank and Coinbase, were allegedly targeted for resisting FDIC demands. Agency executives reportedly referred to employees at these firms as “assholes who think they know how to regulate themselves.”
The tapes also reportedly capture FDIC officials discussing how their media team could counter criticism effectively. An executive claimed,
“Our media team is paid more than most critics make in a decade.”
FOIA Evasion Tactics Highlighted in Recordings
The recordings reportedly detail strategies used to avoid Freedom of Information Act (FOIA) compliance. Whistleblowers allege that officials discussed mislabeling documents or including attorneys in meetings to claim legal privilege.
One attorney allegedly said,
“Including attorneys in meetings allows us to claim attorney-client privilege over the entire discussion.”
Another suggested interpreting FOIA requests narrowly to limit disclosures.
Media Manipulation and Whistleblower Retaliation
According to whistleblowers, FDIC executives arranged quid pro quo agreements with journalists. The recordings allegedly describe trades of sensitive information for less critical media coverage of issues like Operation Chokepoint 2.0.
The tapes also detail efforts to discredit whistleblowers by spreading rumors and releasing counter-narratives. Internal discussions included strategies to minimize the impact of media reports on agency practices.
Sexual Misconduct Allegations and Cover-Ups
Whistleblowers allege that FDIC officials covered up instances of sexual misconduct at agency facilities. Recorded conversations reportedly include officials releasing compromising images of victims to shift blame.
One executive allegedly stated,
“We have CCTV footage that can change public perception about the incident.”
FDIC Concerns Over Crypto’s Impact on Relevance
The tapes also reveal FDIC leadership discussing the threat posed by blockchain and Web3 technologies. Executives reportedly worried about the future of the agency as decentralized finance grows.
One official questioned,
“Who needs deposit insurance when blockchain eliminates the risk of losing money?”
With over 5,000 employees, the FDIC’s role could face challenges if crypto adoption continues to expand.
Insider Trading Allegations Among FDIC Executives
Whistleblowers also accused Federal Deposit Insurance Corporation (FDIC) executives of unethical stock trading. Jenny Traille, a senior official, reportedly traded stocks of banks under FDIC oversight, including Silicon Valley Bank and Signature Bank.
Another official, Amy Thompson, allegedly profited from trades in financial institutions while leading the agency’s communications. Recordings reportedly captured discussions about her financial advisor’s role in these trades.
Additionally, FDIC Exposed highlighted a list of ten senior officials, including Harrel Mychal Pettway and Brian Sullivan, allegedly involved in misconduct and unethical practices. The whistleblowers have called for their termination, with promises of more names to follow.
FDIC Officials Misconduct List. Source: FDIC ExposedCrypto Community Reacts to FDIC Allegations
The leaked recordings have prompted strong reactions within the crypto community. Senator Cynthia Lummis described the allegations as “bone-chilling” and emphasized her commitment to addressing the issue. She announced plans to collaborate with Senate Banking Chair Tim Scott to investigate the matter further.
Senator Lummis on FDIC Allegations. Source: Senator Cynthia Lummis
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