Coinbase has filed lawsuits against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC), accusing the agencies of trying to cripple the crypto industry.

BREAKING: 🇺🇸 COINBASE IS SUING THE SEC, ALLEGING REGULATORS ARE TRYING TO CRIPPLE THE CRYPTO INDUSTRY. pic.twitter.com/bD1B1Vny1r

— Bitcoin Magazine (@BitcoinMagazine) June 27, 2024

The lawsuits, filed on June 27th in Washington D.C. district court, allege the SEC and FDIC failed to comply with Coinbase’s Freedom of Information Act (FOIA) requests. Coinbase says this information could shed light on coordinated efforts by regulators to restrict crypto’s access to banking services.

In its complaints, Coinbase asserts that federal regulators are deliberately campaigning to cut Bitcoin and crypto companies off from the banking system. This represents an existential threat to the industry by choking off vital financial lifelines.

Coinbase points to regulators pressuring banks to deny accounts and services to Bitcoin and crypto firms. It likens this to “Operation Choke Point,” an Obama-era initiative discouraging banks from working with certain “high-risk” sectors.

The exchange argues regulators are violating transparency laws to hide the full scope of their crypto crackdown. Coinbase aims to expose regulatory overreach it says far exceeds agencies’ mandates.

However, legal experts caution that FOIA lawsuits face an uphill battle given agencies’ broad discretion over disclosure exemptions. Proving malicious intent by regulators could also prove difficult.

Nonetheless, the cases represent Coinbase’s latest pushback against regulators like the SEC, with whom it is already locked in multiple legal battles. The exchange is defending the Bitcoin and crypto industry against regulatory hostility threatening its viability.

Coinbase’s accusations resonate with Bitcoin and crypto proponents who believe regulators are abusing their powers to deliberately slow technological advancements. 

On June 26th, the US government sent 3,940 Bitcoin to Coinbase Prime, Coinbase’s institutional trading platform. Blockchain analytics firm Arkham Intelligence flagged the transaction.

JUST IN: 🇺🇸 US Government sends 3,940 #Bitcoin worth $241 million to Coinbase 👀 pic.twitter.com/m14HpdeJ0s

— Bitcoin Magazine (@BitcoinMagazine) June 26, 2024

The transferred Bitcoin was originally confiscated from convicted drug trafficker Banmeet Singh earlier in 2024. Singh was arrested in London in 2019 on distribution charges and extradited to the US in 2023. 

As part of his conviction, Singh forfeited over 8,100 Bitcoin, worth around $150 million at the time, to US authorities. 

While the recent transfer of nearly 4,000 Bitcoin is substantial, it represents just a fraction of the government’s total Bitcoin holdings. Data shows the US government currently possesses around 214,000 Bitcoin worth over $13 billion – making it the largest national holder of Bitcoin globally.

Much of the government’s Bitcoin comes from seizures related to the shuttered dark web marketplace Silk Road. The infamous Bitfinex hack of 2016 also contributed to the stash.

The transfer to Coinbase signals the government may be looking to sell some of its long-dormant Bitcoin reserves. This adds to fears of price impacts similar to the recent German government sell-off.

However, the amount moved so far is relatively minor compared to daily Bitcoin trading volumes. The US government still holds the vast majority of its seized Bitcoin, now worth billions more due to Bitcoin’s meteoric price rise.

An anonymous Bitcoin donor has paid over $500,000 in BTC to cover WikiLeaks founder Julian Assange’s expenses for his flight home to Australia. Assange is now a free man after pleading guilty in a US court under a deal ending his 14-year legal battle.

JUST IN: #Bitcoin pioneer and freedom fighter Julian Assange has landed in Australia. He is officially a free man!

A win for free speech and freedom 👏 pic.twitter.com/lDyPabqa8u

— Bitcoin Magazine (@BitcoinMagazine) June 26, 2024

Assange was released from prison in the UK on June 24th and flew to the US territory of Saipan to enter his plea. He had been fighting extradition to the US on espionage charges related to WikiLeaks publication of classified documents.

On June 26th, Assange arrived back in his native Australia and embraced family members in Canberra. He has been a pioneer for Bitcoin and WikiLeaks since its inception, even receiving donations in BTC in 2010 when few knew about it.

Just a day earlier, to cover the $520,000 cost of his private charter flight arranged by the Australian government, Assange’s wife issued an urgent appeal for donations. She also provided a Bitcoin address for contributions.

Remarkably, a single Bitcoin donor sent over 8 BTC worth nearly $500,000 to the address to cover the entire debt. This allowed Assange to return home without financial burden.

The anonymous donor’s massive contribution highlights the Bitcoin community’s enduring support for Assange and his work revealing government secrets. Bitcoiners have long advocated for his release.

While the whale’s identity remains unknown, the donation underscores Bitcoin’s role in enabling uncensored free speech and financial freedom.

The weeks ahead will focus on helping Assange recuperate after prolonged confinement. However, given his longstanding history with the technology, his engagement with Bitcoin will likely continue. Assange’s saga symbolized the battle between individual liberties and unchecked government power.