Blockchain Association Files Extra FOIL And FOIA Requests Over Crypto-Friendly Banks Closures

Apr. 18, 2023
Blockchain Association Files Extra FOIL And FOIA Requests Over Crypto-Friendly Banks Closures

The Blockchain Association (BA), a cryptocurrency advocacy group, has submitted more requests under the Freedom of Information Act (FOIA) seeking information about recently closed crypto-friendly banks.

These requests come about a month after the crypto advocacy group filed FOIA requests to three main entities. They include the Federal Reserve Board, OCC, and FDIC.

The group said in a statement on 14 April that following the last month’s requests it has filed additional requests for information. BA submitted FOIA and Freedom of Information Law (FOIL) requests to the FHFA and NYDFS, respectively.

The Blockchain Association is seeking additional information regarding the de-banking of crypto companies after the collapse of Silvergate Bank and Signature Bank.

BA stated that its request to the NYDFS was as follows:

“Seek to understand whether the closure of Signature Bank was the result of the bank’s insolvency or a decision to send an anti-crypto message despite the bank being fully solvent.”

Both Signature and Silvergate were important banks for crypto-focused platforms. Meanwhile, Silicon Valley added venture capitalists and several crypto startups as clients.

The DeFi Education Fund and the Blockchain Association filed a brief in a United States (US) District Court in Austin over the sanctioning of Tornado Cash on April 16.

Collapse Of Crypto-Focused Banks

On 8 March, Silvergate Capital Corp., Silvergate’s parent company, wound down operations and said it voluntarily liquidated its bank. Moreover, its peer Silicon Valley Bank was forced to shut down by federal regulators on March 10 after a bank run. And the same thing happened at Signature Bank on March 12.

Meanwhile, the organization revealed that it was investigating whether the Silvergate crash was the result of a politically motivated decision by the FHLBank. The association believes that Federal Home Loan Bank may take “unusual and extraordinary action to recover the loan made to Silvergate several months ago”. FHLBank of San Francisco is under the supervision of FHFA.

The Blockchain Association is a lobbying and advocacy group for the crypto space. This non-profit organization is the voice of industry executives, companies, investors, projects, and organizations.

Kristin Smith, Blockchain Association’s CEO, said in a statement:

“The crypto industry is building the next generation of the internet and financial services. This is important work that has created tens of thousands of US jobs. Businesses need bank accounts to pay employees, vendors, and taxes.”

She added that there are legal businesses in the US. However, agencies must treat them like any other law-abiding business.

Syed Ali Haider

Researcher & Editor
Ali Haider is a Blockchain enthusiast and writer passionate about enhancing the acceptance, adoption, and integration of Blockchain technology worldwide. He has also advocated for digital freedom and cybersecurity for many years.