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Coinbase Seeks SEC Accountability Over Missing Gary Gensler Texts

Coinbase claims the SEC erased over a year’s worth of critical text messages from former Chairman Gary Gensler, pushing for expedited discovery and sanctions to address potential regulatory failures.

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Fact Check
Multiple sources directly confirm the statement. Evidence from CryptoSlate, Blockonomi, and CoinCentral explicitly states that Coinbase has filed legal motions and is seeking sanctions against the SEC, which constitutes demanding accountability for the missing text messages of Chair Gary Gensler.
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Summary

Coinbase has filed a legal complaint against the U.S. Securities and Exchange Commission (SEC), accusing the agency of destroying text messages from former Chairman Gary Gensler between October 2022 and September 2023. The SEC’s Office of the Inspector General confirmed the erasure due to a device-wiping policy, which may have affected texts from over 40 SEC officials. Coinbase is now demanding expedited discovery and sanctions, claiming that the destruction undermines public trust in the agency. The issue comes amid ongoing litigation regarding Ethereum and digital asset regulations, including the collapse of FTX and the SEC's scrutiny of crypto firms.

Terms & Concepts
  • SEC: The U.S. Securities and Exchange Commission, a federal agency regulating securities markets and protecting investors.
  • Coinbase: A major U.S.-based cryptocurrency exchange providing trading and custody services for digital assets.
  • FOIA: The Freedom of Information Act, which allows the public to request access to records from federal agencies.