Coinbase has accused the SEC of destroying nearly a year of former Chair Gary Gensler's text messages during a critical enforcement period. A report from the SEC's Inspector General revealed that texts from October 2022 to September 2023 were permanently erased. In response, Coinbase is seeking expedited discovery, sanctions, and immediate production of the relevant texts, highlighting the SEC's failures in record-keeping despite fining private firms for similar violations. Coinbase's Chief Legal Officer, Paul Grewal, stated that the SEC's destruction of these documents has caused irreparable harm and must come to an end. The SEC's practice of wiping devices after 45 days of disconnection prompted criticisms regarding transparency and accountability. Industry experts warn that if sanctions are imposed, it may create legal precedents affecting the SEC’s credibility and complicate ongoing enforcement actions.

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