Exchange demands court intervention after nearly one year of communications lost
Coinbase has intensified its dispute with US regulators, filing a legal motion on Thursday seeking a court hearing over the Securities and Exchange Commission’s (SEC) deletion of text messages from former Chair Gary Gensler and other senior officials.
Coinbase challenges SEC’s transparency
According to the filing, the SEC’s Office of the Inspector General (OIG) investigation revealed that the agency lost nearly one year of text messages between October 2022 and September 2023 due to “avoidable” IT errors. The deleted communications included discussions potentially relevant to Coinbase’s Freedom of Information Act (FOIA) requests submitted in 2023 and 2024.
Coinbase argued that the SEC failed to conduct a full search of agency records, particularly regarding Ethereum’s transition to proof-of-stake (PoS). The exchange asked the court to compel the SEC to produce all missing records and communications.
“This Court’s intervention is warranted to determine whether the SEC has in fact violated the Court’s prior orders and to ensure that all available measures are taken to preserve and produce responsive records,” the motion stated.
Potential remedies and next steps
Coinbase also requested an additional hearing once the records are produced, allowing the court to consider further remedies such as attorney fees or even a Special Counsel investigation.
The SEC, in response, said that transparency remains paramount and that new steps are being taken to prevent similar incidents. “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,” an SEC spokesperson noted.
The dispute adds to Coinbase’s ongoing legal fight with the SEC. The regulator sued the exchange in 2023, alleging it operated as an unlicensed securities broker, part of a wider enforcement push under Gensler’s leadership.
Coinbase has since argued that Gensler’s personal and professional communications are critical evidence for its defense, particularly given the agency’s shifting stance on digital assets.
The lost records have fueled long-standing criticism from crypto firms that the SEC lacks transparency in its enforcement approach — a point Coinbase is now leveraging in its legal strategy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.