Coinbase served a motion by the federal court in that responsibility demanded after the Securities and Exchange Commission (SEC) had removed for almost a year with SMS messages from former chairman Gary Genler during the Crypto enforcement campaign of the Bureau.
The archiving of 11 September strives for accelerated discovery, sanctions and immediate production of all responsive communication.
A SEC Office of Inspector General Report released on 3 September the agency revealed that the texts of Gensler removed from October 2022 to September 2023. This period coincides with the FTX collapse and multiple crypto enforcement actions, including those against Coinbase.
The removal took place after Coinbase has submitted Foia requests to request “all communication” with regard to crypto -regulating decisions.
Coinbase Chief Legal Officer Paul Grewal stated via social media:
“The Genler SEC destroyed documents they had to retain and produce. We now have proof of the own inspector general of the sec.”
Court assignments are said to have been violated
The court claimed that the SEC has violated several judicial orders that require the production of communication between Gensler and other officials with regard to the regulatory status of Ethereum.
Despite judicial guidelines that include ‘all documents and communication’, the productions of the agency do not contain SMS messages and did not indicate that texts were searched.
The SEC only carried out late SMS messages in April and June 2025, months after claiming compliance with judicial orders.
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Moreover, the submission argued that the agency reported that no responsive texts were found. However, it acknowledged that searches were incomplete due to technical limitations that influence dozens of devices of senior officials.
‘Mission-related communication’
The Inspector General noted that 38% of the recovered gene-related communication included “mission-related communication”, including discussions with regard to crypto enforcement, in contradiction with claims that he only used texts for administrative purposes.
One May 2023 interview was Gensler, his staff and the director of the enforcement division who discussed the timing of actions against crypto -trading platforms.
Grewal said that the information yields a double standard problem for the SEC, which imposed more than $ 1 billion in fines on financial companies for registration violations during Gensler’s term of office.
He added that the agency emphasized that “everyone should play according to the same rules”, while he would pursue enforcement actions to maintain the preservation of SMS messages.
History Associates, which represents Coinbase, argues that 40 extra SEC officials are at a continuous risk of losing SMS reports due to back -up system malfunctions. The submission requires emergency intervention to prevent further destruction of documents.