Coinbase Takes Legal Action Against SEC Over Deleted Text Messages
- Coinbase filed a motion on Sept. 11 seeking accountability after the SEC deleted text messages from former Chair Gary Gensler.
- An SEC report revealed that texts from October 2022 to September 2023, coinciding with significant events like the FTX collapse, were deleted.
- The filing alleges violations of court orders requiring communication production regarding Ethereum’s regulatory status.
- 38% of recovered texts were deemed “mission-related,” contradicting claims they were used solely for administrative purposes.
- Coinbase’s legal team warns that over 40 senior SEC officials risk losing further text messages due to technical failures.
The case highlights concerns over transparency within the SEC, particularly as it has imposed over $1 billion in fines on firms for recordkeeping violations during Gensler’s tenure. Coinbase’s motion seeks emergency intervention to prevent further document destruction amid ongoing investigations into crypto regulations.
This legal action underscores the implications of lost communications, especially as Coinbase argues that critical information related to regulatory decisions may have been compromised. (Source)
