Coinbase Files Legal Motion Against SEC Over Lost Texts From Ex-Chair Gary Gensler – Finance Magnates

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Coinbase has filed a legal motion against the US Securities and Exchange Commission (SEC) after the regulator admitted to losing nearly a year of text messages from former Chair Gary Gensler. The move escalates the exchange’s battle with Washington regulators as it pushes for transparency in ongoing legal disputes.
The filing, made Thursday, asks the court to address findings by the SEC’s Office of Inspector General, which concluded that the agency deleted text messages from Gensler and other top officials due to “avoidable” errors.
Coinbase argued the SEC failed to conduct a complete search when responding to its Freedom of Information Act (FOIA) requests in 2023 and 2024.
The exchange is seeking a court order compelling the SEC to produce all relevant communications, including records tied to Ethereum’s transition to proof-of-stake. Coinbase also requested an additional hearing after discovery to consider remedies such as attorney fees and possibly a special counsel investigation.
An SEC spokesperson said transparency remains central to the regulator’s operations. “When Chairman Atkins was briefed on this matter, he immediately directed staff to examine and fully understand what occurred and to take steps that will prevent it from happening again,” the agency said.
The Inspector General’s report revealed that text messages from October 2022 to September 2023 were lost before backups could be made. That period overlapped with the SEC’s lawsuits against several crypto companies, including its 2023 case accusing Coinbase of operating as an unlicensed securities broker.
Coinbase has argued that Gensler’s private communications could be critical in its defense. The new motion underscores the growing friction between the exchange and the SEC, as disputes over missing records now add to an already high-stakes regulatory fight.
Coinbase has filed a legal motion against the US Securities and Exchange Commission (SEC) after the regulator admitted to losing nearly a year of text messages from former Chair Gary Gensler. The move escalates the exchange’s battle with Washington regulators as it pushes for transparency in ongoing legal disputes.
The filing, made Thursday, asks the court to address findings by the SEC’s Office of Inspector General, which concluded that the agency deleted text messages from Gensler and other top officials due to “avoidable” errors.
Coinbase argued the SEC failed to conduct a complete search when responding to its Freedom of Information Act (FOIA) requests in 2023 and 2024.
The exchange is seeking a court order compelling the SEC to produce all relevant communications, including records tied to Ethereum’s transition to proof-of-stake. Coinbase also requested an additional hearing after discovery to consider remedies such as attorney fees and possibly a special counsel investigation.
An SEC spokesperson said transparency remains central to the regulator’s operations. “When Chairman Atkins was briefed on this matter, he immediately directed staff to examine and fully understand what occurred and to take steps that will prevent it from happening again,” the agency said.
The Inspector General’s report revealed that text messages from October 2022 to September 2023 were lost before backups could be made. That period overlapped with the SEC’s lawsuits against several crypto companies, including its 2023 case accusing Coinbase of operating as an unlicensed securities broker.
Coinbase has argued that Gensler’s private communications could be critical in its defense. The new motion underscores the growing friction between the exchange and the SEC, as disputes over missing records now add to an already high-stakes regulatory fight.
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