Coinbase Seeks Sanctions After SEC Wipes Gensler’s Texts

Coinbase Seeks Sanctions After SEC Wipes Gary Gensler’s Text Messages

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 12, 2025

Key Takeaways

An internal review showed Gary Gensler’s SEC text messages from October 2022 to September 2023 were permanently erased;
Coinbase asked a DC court to sanction the SEC, speed discovery, and release remaining records tied to the lost messages;
The SEC’s device-wipe policy and delayed record searches are blamed for erasing data that Coinbase says should have been preserved.

Ace quick missions & earn crypto rewards while gaining real-world Web3 skills. Participate Now! 🔥

BITDEGREE IN YOUR SOCIAL FEED

The US Securities and Exchange Commission (SEC) is facing criticism after an internal review showed that former Chair Gary Gensler’s text messages were erased between October 2022 and September 2023.

The Inspector General confirmed the records were permanently deleted, which raises concerns about how the agency manages and preserves important communications.

According to the SEC, it uses a system that wipes government-issued devices if they remain disconnected from the network for more than 45 days.

What is a Crypto Mining Rig? Is it Worth it? (EASILY Explained)

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

In response, Coinbase $2.49B has asked a federal court in Washington, DC, to issue sanctions against the SEC, require faster discovery, and order the release of all remaining records.

In its filing, Coinbase said the destruction has caused harm that cannot be fixed and urged the court to halt a "destroy-and-delay" approach.

The company also pointed to the Freedom of Information Act disputes. The SEC first blocked Coinbase’s requests by claiming exemptions tied to law enforcement. That stance changed after Coinbase sued in June 2024.

Coinbase stated that the SEC could have processed or at least protected the records in 2023 if it had carried out timely searches.

Chief Legal Officer Paul Grewal stated in a post on X that the SEC "destroyed documents they were required to preserve and produce", and pointed to the Inspector General’s findings as proof.

Meanwhile, a group of international regulators and exchange associations recently asked the SEC to take a stance on tokenized stocks. What did they say? Read the full story.