Sen. Cynthia Lummis Pledges To Shut Down Operation Chokepoint 2.0

• Senate leaders commit to probing the FDIC’s role in “Operation Chokepoint 2.0.”
• Whistleblowers accuse FDIC of targeting crypto firms and suppressing the industry.
• FDIC officials allegedly engaged in disinformation campaigns and personal vendettas.

Pro-crypto Republican Senator Cynthia Lummis has re-committed to bringing down conspirators involved in the anti-crypto “Operation Chokepoint 2.0” investigation following fresh and damning allegations against the U.S. Federal Deposit Insurance Corporation (FDIC).

Operation Chokepoint 2.0

A lengthy post from the whistleblower group “FDIC Exposed ,” Jan. 11, 2025, has levied many damning allegations against the agency.

Though concerning crypto and Web3, it would seem that, for several years, the FDIC has been waging a very corrupt and influential war against the industry, its organizations, companies, and specific members.

This conspiracy is otherwise known as Operation Chokepoint 2.0.

In light of this revelation, Lummis has suggested that she and the newly appointed pro-crypto U.S. Senate Banking Committee head, Tim Scott, will investigate the matter.

Notably, Lummis and Scott share the same critical view of the FDIC and its outgoing Chairman, Martin Gruenberg.

Gruenberg is considered to be the “mastermind” behind Operation Chokepoint 2.0 and the main force pressuring banks to allegedly limit or deny banking services to crypto firms and suppress the industry through various other means.

The Details

Members of the FDIC have been reported to be “airing personal vendettas” against firms such as Coinbase and Custodia Bank, as FDIC exec thought them as “assholes who think they know how to regulate themselves.”

The FDIC’s Communications Director, Amy Thompson, and Senior Media Affairs Officer, Brian Sullivan, are also alleged to have sought “less harsh” coverage of favorable topics with “several” journalists:

“[…]including Chairman Gruenberg’s antics and Operation Choke Point 2.0, in exchange for further information about other “higher value” issues in a quid quo pro arrangement.”

It also alleges that the agency bragged about how its well-paid dedicated media team would give it the leverage it needs to win with disinformation campaigns.

The post notes that the agency mocked attempts from “crypto supports” attempting to hold the firm accountable. The post says the group spent seven years compiling and reviewing recordings from private calls, conversations, and Microsoft Teams meetings, from which it was able to make such allegations.

“The findings are nothing short of astonishing. They show signs that the FDIC is the most corrupt, disgruntled, and defunct organization ever.“

Fascinatingly, the whistleblowers allege that the FDIC is concerned that Web3 and blockchain threaten the sustainability of regulatory institutions. They may even fear what could happen to its “5,000+ permanent employees” if the tech makes them obsolete.