12.09.2025 02:18
Coinbase has formally petitioned a federal court, asserting that the U.S. Securities and Exchange Commission (SEC) has not only contravened the Freedom of Information Act but has also eroded public confidence. This legal challenge stems from alarming disclosures revealing the disappearance of nearly a year's worth of text messages belonging to former SEC Chair Gary Gensler, a critical period for digital asset policy.
In its compelling court submission, prepared with assistance from History Associates, Coinbase accuses the SEC of deliberately impeding a thorough review of its communications concerning Ethereum and other digital assets. The cryptocurrency exchange alleges that the regulatory body deliberately delayed essential searches, employed overly restrictive search terms, and conspicuously failed to promptly disclose the irreversible loss of these crucial records. Such tactics, Coinbase contends, have critically hindered a transparent examination of information vital to public comprehension of the SEC's evolving stance on cryptocurrency.
Confirmation of these significant deletions arrived via a report from the SEC's own Office of Inspector General, which verified the permanent erasure of Gensler's text messages spanning from October 2022 to September 2023. This critical timeframe encompasses pivotal events, including the dramatic collapse of the FTX crypto exchange and the initiation of several high-profile enforcement actions, some directly targeting Coinbase itself. The OIG's investigation elucidated that the data loss was a consequence of a new agency protocol designed to remotely wipe devices that had been disconnected from the SEC network for over 45 days. Consequently, Gensler's mobile device underwent a reset, obliterating all his text communications from the specified period, with subsequent recovery efforts proving utterly fruitless. Investigators later determined that a substantial portion of these missing communications would undoubtedly qualify as official federal records.
Further exacerbating the SEC's escalating recordkeeping crisis, the Inspector General's inquiry unearthed potential risks extending far beyond the former Chair's device. Revelations suggest that text messages from more than twenty other senior SEC officials may already be irretrievably lost, while the devices of nearly forty additional officials were not adequately backed up. This systemic failure creates the unsettling prospect of further critical data being compromised or lost. In light of these profound systemic shortcomings and the agency's deteriorating credibility regarding its official records, Coinbase is now strenuously demanding that the court impose sanctions on the SEC.
