Coinbase Accuses US SEC of Erasing Gensler’s Text Messages

Coinbase Challenges SEC Over Missing Communications

Coinbase has approached a federal court regarding the deletion of text messages from Gary Gensler, former SEC chairman.
A report cited by Coinbase claims the SEC excluded officials’ text messages while processing FOIA requests, which should be considered agency records.
The exchange's CLO, Paul Grewal, emphasized the need for expedited discovery and sanctions to prevent future occurrences.
The erasure involved texts from October 2022 to September 2023, coinciding with significant regulatory actions against major crypto exchanges, including Binance, Kraken, and Coinbase.
Coinbase is concerned about missing communications related to crypto regulatory decisions during this period, especially around the time FTX collapsed.

Transparency and Financial Accountability Concerns

Coinbase seeks transparency on the financial implications of the SEC’s regulatory actions under Gensler, questioning if they justified public spending or hindered innovation.
Despite offering to cover processing fees, Coinbase states critical information was missing in documents provided to Congress, leading to a lawsuit against the SEC and FDIC.
The lawsuit also involves investigations into “Ethereum 2.0” and accusations of agencies urging banks to halt crypto asset activities.