Senator Cynthia Lummis has raised serious allegations against the Federal Deposit Insurance Corporation (FDIC), accusing the agency of destroying documents related to its activities in the digital asset sector. In a letter addressed to FDIC Chair Marty Gruenberg on January 16, 2025, Lummis highlighted whistleblower claims of document destruction and retaliatory actions against staff who attempted to preserve materials relevant to Senate oversight.‍

Allegations of Document Destruction

According to the letter, FDIC whistleblowers alleged that management monitored staff access to critical materials and threatened legal action to deter employees from sharing information with the Senate Banking Committee. Lummis stated that these actions are illegal and demanded that the FDIC immediately halt any destruction of documents and cease retaliatory practices.

The whistleblowers’ allegations specifically pertain to the FDIC’s activities since January 1, 2022, including its supervision and resolution of banks involved in digital assets, such as Signature Bank and Silvergate Bank.‍

Scope of Document Preservation

Senator Lummis called for the preservation of all records, communications, and metadata related to the FDIC’s digital asset activities. This includes materials on supervision, enforcement actions, deposit insurance applications, and coordination with other federal and state agencies. Lummis explicitly mentioned that materials containing terms like “crypto,” “bitcoin,” “ethereum,” and “digital asset” must be preserved.

She also emphasized that assertions of privilege, such as claims of confidentiality or exclusion from record-keeping requirements, do not exempt the FDIC from preserving these materials for Senate oversight.‍

A Warning Against Obstruction

The letter included a stern warning: If it is discovered that the FDIC or its staff knowingly destroyed documents or obstructed Senate oversight, Lummis pledged to make swift criminal referrals to the U.S. Department of Justice.

“Preserve means securing and maintaining the integrity of all relevant materials… by taking all reasonable steps to prevent destruction, alteration, or deletion,” Lummis wrote, outlining the legal obligations of the agency.

Critics argue that federal agencies, including the FDIC, have targeted the crypto sector disproportionately, an accusation tied to concerns over “Operation Choke Point 2.0,” a perceived effort to limit banking access for crypto firms.

The FDIC has not yet publicly responded to the allegations.