Coinbase Says SEC 'Destroyed' Gensler Texts, Demands Court Sanctions

Core Points - Coinbase has accused the SEC of destroying text messages from former Chair Gary Gensler, which could undermine the regulator's credibility in future enforcement actions [1][3] - The SEC's Office of the Inspector General reported that nearly a year of Gensler's text messages were permanently deleted between October 2022 and September 2023 [1][2] - Coinbase is seeking sanctions and expedited discovery from the U.S. District Court for the District of Columbia regarding the SEC's recordkeeping practices [2][3] SEC's Recordkeeping Practices - The SEC has a policy of remotely wiping devices that are disconnected from its network for 45 days, which has led to the destruction of important records [2] - The destruction of records has been described as causing "irreparable harm" and has raised questions about the SEC's moral authority, especially given its history of fining private firms for poor recordkeeping [3] - The Inspector General's report also indicated potential record losses from devices belonging to over 40 other senior SEC officials, with 21 devices flagged for confirmed or suspected data destruction [4]