Coinbase hunting in “ChalkePoint 2.0” document when judges revive FDIC lawsuits

According to FOX business journalist Eleanor Terrett, the US District Judge lifted a Coinbase Freedom Information Act (FOIA) lawsuit against the Federal Deposit Insurance Corporation (FDIC) without waiting for the agency to respond.

Terret observed through X that Judge Reyes appears to be unhappy with the situation. The judge’s decision resumes legal proceedings and allows Coinbase to look for documents that FDIC claimed to withhold. The stay has suspended the fight since February, when the court wanted a settlement between the two parties without further litigation.

Related: Coinbase accuses FDIC of secretly suppressing crypto banks

The lawsuit will resume after FDIC allegedly halted cooperation

Coinbase has filed a motion with DC District Court to resume its FOIA lawsuit, alleging that FDIC has halted cooperation and is still withholding important information. The exchange noted that cooperation was improved under acting Chair Travis Hill, but communication later collapsed.

Judge Reyes, who had made his former stay to allow a voluntary resolution, responded by granting Coinbase’s claim. The judge acted before hearing from the FDIC. This suggests, Terrett suggests, suggesting that court concerns over a halt of transparency are growing.

Coinbase has publicly stated its preference to resolve issues outside the legal system, but will continue to seek full disclosure through the courts if necessary.

FOIA requests target the “Operation Chokepoint 2.0” action

The core of Coinbase’s FOIA requests include allegations linked to “Operation Chalk Point 2.0.” The term refers to the claim that certain federal agencies, including FDIC, have put informal pressure on banks to reduce services to industries that are considered high-risk, including crypto companies.

Related: Coinbase claims SEC and FDIC Stonewalling for Ethereum Stance in the FOIA lawsuit

Coinbase argues that these actions result in unfair restrictions on financial access and puts digital asset companies at a disadvantage. The company also argues that FDIC’s approach could violate legitimate processes and First Amendment protections by targeting companies based on its sector.

The resurrected lawsuit aims to force the FDIC to create internal records relating to these suspected actions. Coinbase argues that greater transparency is needed to prevent future overreach and ensure regulatory accountability. The FDIC is expected to respond to the court within two weeks.