Coinbase has accused the US SEC of destroying nearly a year of text messages from former Chair Gary Gensler, urging a federal court to impose sanctions on the regulator.
The company says the lost records cut into its ability to scrutinize how the agency shaped its aggressive stance on cryptocurrencies under Gensler.
An investigation by the SEC’s Office of Inspector General confirmed that Gensler’s messages between Oct. 2022 and Sept. 2023 were erased. The watchdog found other senior officials may also have lost records, raising broader concerns about the agency’s recordkeeping practices.
Lawyers for the group argue the SEC failed to hand over relevant records, and also allowed them to be wiped by a device policy that automatically deleted texts if a phone remained offline for more than 45 days.
At the same time, the dispute over lost texts comes after months of friction between the agency and Coinbase. The company has long accused the SEC of regulating by enforcement rather than setting clear rules.
In the filing, lawyers for History Associates said the SEC failed to search text messages. This happened despite court orders requiring the production of “all documents and communications. ” They argued that the omission violated discovery rules. As a result, they said it could justify sanctions.
