Coinbase demands sanctions on destroyed sec communication

Coinbase has submitted a motion with ownership koning against the US Securities and Exchange Commission (SEC) After he discovered that almost a year of reports from former chairman Gary Genler was permanently deleted.

This communication included from October 2022 to September 2023, a period characterized by large crypto events such as the FTX decorative and enforcement actions against the stock exchange.

Sanctions and an investigation

Coinbase, working via History Associates, has told a federal court that the actions of the SEC de Freedom of Information Act (Foia) have violated. This follows a recent report from the Office of Inspector General (OIG) of the agency that revealed great failures in the way it dealt with information.

The Department shared that the texts of former chairman Gensler, who include exchanges on crypto enforcement actions, settlements and speeches, were permanently removed under a strict device cloth policy.

Coinbase Chief Legal Officer Paul Grewal described The situation as a ‘gross violation of the public trust’, the federal court calls on to take measures ‘to ensure that it never happens again’.

Coinbase assertions In his submission that although the SEC has held private companies responsible for keeping records, it has neglected its responsibilities. The company is of the opinion that the behavior of the agency shows a “flagrant double standard” and shows “a pattern of avoidance and delay”.

The exchange now asks the court to insist on faster searches for the remaining data and to allow an investigation into how official communication was destroyed. It also insisted on the authorities to consider sanctions against the SEC and to warn that without rapid action there is a “serious risk of further evidence loss” that could damage the lawsuit and public trust.

Sec accused of violating foia rules

In July and August 2023, Coinbase foia requests submitted to ask for messages between Gensler and other officials about Ethereum and related enforcement actions. However, the SEC responded with general denials without even checking the records.

When the company brought the case to court in June 2024, the agency postponed the assessments, asked for long extensions and claimed that it followed the judicial orders. Moreover, it only went looking for communication in April and June 2025. By that time, many of the records had already been destroyed.

The findings of the OIG showed that exchanges between more than 20 other senior officials may have been lost, while around 40 devices remain risk due to back -up errors. It also revealed that the SEC did not search for texts during reviews, unless specifically instructed and did not inform to inform requests when the relevant data had been deleted.

According to the submission, this is proof that the FOIA rules agency has violated, did not obey court assignments, and has caused irreparable damage by losing the information.