{"id":16036,"date":"2025-09-15T05:41:30","date_gmt":"2025-09-15T03:41:30","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16036"},"modified":"2025-09-15T05:41:30","modified_gmt":"2025-09-15T03:41:30","slug":"coinbase-takes-legal-action-seeks-text-messages-from-ex-sec-officials","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/15\/coinbase-takes-legal-action-seeks-text-messages-from-ex-sec-officials\/","title":{"rendered":"Coinbase Takes Legal Action, Seeks Text Messages from Ex-SEC Officials"},"content":{"rendered":"

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Coinbase is intensifying its conflict with US authorities regarding earlier communications involving former Securities and Exchange Commission Chair Gary Gensler.<\/p>\n

On Thursday, Coinbase submitted a legal motion seeking a hearing to discuss the SEC Office of the Inspector General\u2019s probe, which revealed that the agency erased nearly one year\u2019s collection of text messages from Gensler and other high-ranking officials due to \u201cavoidable\u201d mistakes.<\/p>\n

The cryptocurrency exchange asserted that the SEC must clarify why it failed to perform a comprehensive search of agency records, including messages from Gensler<\/a> and senior SEC executives, when it requested these communications in multiple Freedom of Information Act (FOIA) submissions from 2023 and 2024.<\/p>\n

As stated in the motion, Coinbase seeks to compel the SEC through the court to locate and produce all relevant communications initially requested, which includes all messages and documents from Gensler and the agency pertaining to Ethereum’s transition to proof-of-stake (PoS) consensus. The FOIA submission stated<\/a>:<\/p>\n

This Court’s intervention is necessary to ascertain whether the SEC has indeed breached the Court\u2019s previous directives and to guarantee that all feasible steps are taken to preserve and present responsive records.<\/p><\/blockquote>\n

Additionally, the exchange suggested another hearing after the materials have been provided and examined during legal discovery to address further remedies such as attorney fees, if required.<\/p>\n

\u201cFollowing discovery, the parties can then return to the Court, where the Court will determine the suitable additional remedial actions at that time,” including findings that could \u201cinitiate a Special Counsel investigation.”<\/p>\n

Representatives for the SEC informed Cointelegraph that transparency is \u201cessential\u201d to the agency\u2019s operations and its accountability to taxpayers.<\/p>\n

Coinbase’s FOIA lawsuit against the SEC. Source: <\/em>Paul Grewal<\/em><\/a><\/figcaption><\/figure>\n

\u201cWhen Chairman Atkins was informed about this matter, he promptly instructed staff to investigate and fully comprehend what transpired and to implement measures that will avert a recurrence,\u201d stated the SEC spokesperson.<\/p>\n

Crypto firms have long insisted on clarity from the SEC concerning its communications related to enforcement actions against crypto initiatives<\/a>, which resulted in a migration of companies from the United States.<\/p>\n

Related: <\/strong><\/em>SEC chair states most tokens are not securities, supports \u2018super-app\u2019 platforms<\/strong><\/em><\/a><\/p>\n

The SEC deleted almost one year\u2019s worth of messages that Coinbase sought<\/h2>\n

The SEC lost nearly one year\u2019s collection of Gensler\u2019s text messages from October 2022 to September 2023, as per the SEC Inspector General\u2019s investigative report<\/a>.<\/p>\n

According to the investigation, Gensler\u2019s messages were automatically erased by the SEC\u2019s IT department before the messages could be backed up.<\/p>\n

\"Coinbase,
The sequence of events regarding the deleted text messages, as per the SEC\u2019s Inspector General. Source: <\/em>SEC<\/em><\/a><\/figcaption><\/figure>\n

The SEC filed a lawsuit against Coinbase<\/a> in 2023, claiming that the exchange breached US securities regulations by operating as an unlicensed securities broker, an allegation the SEC made against numerous crypto firms during Gensler\u2019s tenure.<\/p>\n

In retaliation, Coinbase requested that US courts mandate the SEC to release Gensler\u2019s private email correspondence<\/a>, arguing that the former SEC chair\u2019s personal communications would be a crucial resource for its legal conflict with the SEC.<\/p>\n

Magazine: <\/strong><\/em>Godzilla vs. Kong: SEC faces tough battle against crypto\u2019s legal strength<\/strong><\/em><\/a><\/p>\n