Coinbase Pushes for Sanctions After SEC May Have Lost Ethereum-Related Texts

• Missing records span Oct 2022–Sep 2023, including FTX fallout and major enforcement actions.

• Coinbase filed for sanctions and faster discovery, alleging FOIA violations and late disclosure.

• Inspector General: multiple senior officials’ devices affected; nearly 40 devices lacked proper backups.

SEC lost texts: Coinbase seeks sanctions after nearly a year of agency messages disappeared; read the latest developments and what it means for crypto oversight.

What happened when the SEC lost key crypto records?

SEC lost texts after agency-issued phones were reset under a policy that wipes devices inactive for over 45 days, erasing messages from October 2022 to September 2023. The SEC Office of Inspector General confirmed retrieval attempts failed and many deleted messages qualify as federal records, sparking transparency and recordkeeping concerns.

How did the texts disappear and who is affected?

The Office of Inspector General found the purge resulted from automatic device resets and incomplete backup procedures. More than 20 senior officials may have lost records and nearly 40 devices were never properly backed up. This suggests a systemic recordkeeping failure rather than an isolated incident.

Why is Coinbase pushing for sanctions?

Coinbase argues the SEC’s loss of records obstructs a fair legal process and violated the Freedom of Information Act. The exchange claims delayed disclosure and incomplete production of documents denied stakeholders insight into internal policy debates, justifying sanctions and accelerated discovery to establish the full record.

What did the Inspector General report find?

The SEC Office of Inspector General identified automatic device wipes for phones inactive over 45 days and numerous failures in backup protocols. Investigators confirmed many erased messages meet the criteria for federal records but were not preserved. The report flagged multiple senior officials and tens of devices as affected.

Frequently Asked Questions

Which period of messages were deleted?

Messages dated from October 2022 through September 2023 were erased after devices were reset under the agency’s inactivity policy.

Could deleted texts impact regulatory cases?

Yes. The missing texts cover high‑profile events and enforcement decisions, which could affect evidentiary records and public understanding of internal deliberations.

Key Takeaways

• Record loss was substantial: Texts spanning nearly a year were erased and many qualify as federal records.
• Systemic weaknesses: Backup failures and multiple affected devices point to broader recordkeeping problems.
• Legal and trust risks: Coinbase’s sanctions request and FOIA claims escalate scrutiny of SEC transparency and compliance.

Context and expert perspective

Industry observers note the deleted period coincides with major crypto events, including the FTX collapse and heightened regulatory activity. Experts in records management told reporters that federal agencies must maintain defensible preservation protocols; failure to do so undermines enforcement credibility and public trust.

Related coverage (titles only)

Pi Network News: Top 8 Holders Revealed in Latest Rich List

Elon Musk is no Longer the World’s Richest Person – Larry Ellison Takes His Place

Gold Hits New All-Time High Above $3,650 as Dollar Weakens

Conclusion

When the SEC lost texts over a critical 12‑month window, the episode exposed recordkeeping gaps that have legal, regulatory, and trust implications for U.S. crypto oversight. Coinbase’s push for sanctions aims to restore a complete record and accountability. Expect court rulings and Inspector General follow‑ups to shape next steps in transparency and enforcement policy.

Published: 12 September 2025 | 07:53 — Updated: 12 September 2025 | 07:53