Coinbase Takes a Swing at SEC for Deleting Gensler’s Texts: A Public Trust Nightmare!

by

The mighty global crypto exchange platform, Coinbase, has found itself in a legal tango with the US Securities and Exchange Commission (SEC). This time, it’s all about the SEC allegedly trampling on the Freedom of Information Act (FOIA), and the audacious claim that it’s wrecking the public’s trust. Oh, the drama! 🎭

Coinbase Files Legal Motion Against SEC

On Tuesday, the crypto giant Coinbase filed a fiery court motion, explaining how the SEC just couldn’t get its act together to disclose communication records involving Ethereum and other digital assets. The crypto world, not known for its fondness for bureaucracy, is now pointing fingers, claiming that the SEC is suffering from a “credibility crisis” that could leave the regulator weak and wobbly in future legal showdowns. 💼

Coinbase is absolutely livid, saying the SEC’s behavior has prevented the public from reviewing critical communications, which could’ve influenced public opinion about the agency’s decisions. Nice move, SEC. 🧐

In a post that could have been straight out of a courtroom drama, Coinbase’s Chief Legal Officer, Paul Grewal, went on X (formerly Twitter, because why not?), stating: “The Gensler SEC destroyed documents they were required to preserve and produce. We now have proof from the SEC’s own Inspector General. Today, we ask the federal court to address this gross violation of public trust to ensure that it never happens again.” 🔥

What Happened Between Coinbase and the SEC?

September 3 saw the SEC Office of Inspector General reveal a bombshell report that exposed the agency’s messy habits. It turns out the SEC erased a whole year’s worth of text messages from none other than former SEC Chair Gary Gensler. These messages allegedly held critical details about the FTX collapse and major enforcement actions involving Coinbase. Oops. 😬

These texts disappeared just after Coinbase made a FOIA request for all communications relating to crypto regulation. And suddenly, the SEC looks like a messy teenager hiding evidence from mom. But hey, that’s just speculation. 🤔

Coinbase’s Demand Against the SEC

Now, Coinbase isn’t just whining about it. Oh no. The company wants the court to impose sanctions on the SEC for bungling the records. They also want an expedited investigation to find out just how many documents the agency has “accidentally” destroyed. Classic SEC, right? 🕵️‍♂️

And the icing on the cake? Coinbase is calling out the SEC for double standards. Grewal pointed out, “Considering the double-standards of the previous Chair, it’s not surprising that the same agency that fined firms billions for record-keeping failures committed the exact same violations.” Yikes. It’s like the pot calling the kettle… what? Black? 🔥🍳

In the end, Coinbase believes that the SEC didn’t disclose the destruction of texts in time, which just further erodes public trust. They’re demanding that the agency pay the piper for causing “irreparable harm.” Oh, and they want the whole mess cleaned up pronto. 🚨

Read More

2025-09-12 16:58