Coinbase filed a FOIA-based motion asking a court to compel the SEC to produce all communications, saying the agency failed to search for and preserve nearly one year of former Chair Gary Gensler’s text messages; the motion seeks hearings, discovery, and possible remedial sanctions.
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Coinbase FOIA motion requests full production of Gensler-era communications.
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The SEC Inspector General found nearly one year of Gensler’s texts were deleted before backup.
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Coinbase seeks court orders, discovery, and potential remedies including attorney fees and further investigation.
Meta description: Coinbase FOIA motion demands SEC produce deleted Gensler texts and related records — read the timeline and next legal steps. (150-160 characters)
Legal representatives for Coinbase filed a motion for a legal hearing and potential remedies after the SEC failed to comply with FOIA requests.
Coinbase is escalating its dispute with US regulators over past communications involving former Securities and Exchange Commission Chair Gary Gensler.
Coinbase filed a legal motion on Thursday requesting a hearing to address the SEC Office of the Inspector General’s investigation, which found that the agency deleted nearly one year’s worth of text messages from Gensler and other senior officials in “avoidable” errors.
What does Coinbase’s FOIA motion ask the court to do?
Coinbase’s FOIA motion asks the court to compel the SEC to search for and produce all responsive communications, including text messages and documents from Gary Gensler and other senior officials about enforcement matters and Ethereum’s shift to proof-of-stake. Coinbase also requests hearings and possible remedial measures following discovery.
Why is the deleted text-message timeline central to the case?
The SEC Inspector General’s report concluded messages from October 2022 to September 2023 were not preserved. That gap affects discovery because Coinbase argued those communications could reveal regulatory intent and coordination relevant to SEC enforcement claims against crypto platforms.
Coinbase’s FOIA lawsuit against the SEC. Source: Paul Grewal
How does Coinbase propose to proceed if records are produced?
Coinbase proposed an additional post-production hearing to review materials obtained during discovery. The company asked the court to consider remedies such as attorney fees and further actions that might prompt a Special Counsel review if deficiencies persist.
The timeline of events regarding the deleted text messages, according to the SEC’s Inspector General. Source: SEC
When did the SEC lose messages and what did the IG report find?
The SEC Inspector General found that messages from October 2022 through September 2023 were deleted as part of automatic IT processes before backups were secured. The IG described these deletions as “avoidable” and concluded the agency failed to preserve potentially relevant records.
What are the legal implications for Coinbase and the SEC?
For Coinbase, missing communications could bolster arguments that agency actions lacked transparency or that evidence was withheld during discovery. For the SEC, the IG findings raise accountability questions and could lead to court-ordered discovery remedies or administrative follow-up.
Frequently Asked Questions
Can Coinbase force the SEC to search for deleted texts?
Court intervention can require the SEC to perform a full search of agency records and produce responsive communications. If records cannot be recovered, courts may order alternative remedies, including sanctions or additional discovery measures.
What did the SEC say about the deleted messages?
The SEC stated transparency is paramount and that Chairman Atkins directed staff to examine and prevent recurrence. The agency has acknowledged the IG findings and is reviewing IT and preservation procedures.
How might this affect other crypto enforcement cases?
Missing communications could influence ongoing litigation and discovery in other cases by highlighting potential evidence gaps and prompting broader demands for agency transparency in crypto enforcement matters.
Key Takeaways
- Record gaps matter: Missing Gensler-era texts cover Oct 2022–Sep 2023 and can impact discovery.
- Legal remedies sought: Coinbase requests compelled production, hearings, and possible sanctions.
- Transparency focus: The dispute spotlights agency record preservation and disclosure practices.
Conclusion
This Coinbase FOIA motion centers on alleged failures to preserve Gary Gensler’s communications and asks courts to compel full production and consider remedies. Coinbase FOIA motion filings will shape discovery timelines and raise broader transparency issues for SEC crypto enforcement; expect follow-up hearings and legal briefing. COINOTAG will monitor updates.
