"The SEC under Gensler deleted messages at the height of the anti-crypto campaign," Coinbase CEO Brian Armstrong said on X, reacting to the recent settlement that finally closes a legal battle surrounding missing documents from the former chairman’s tenure. The U.S. Securities and Exchange Commission agreed to a $150,000 payment and the release of previously withheld materials following a Freedom of Information Act lawsuit filed by History Associates on behalf of Coinbase.
The lawsuit, initiated in June 2024, sought access to internal SEC records related to investigations of Ethereum’s shift from proof-of-work to proof-of-stake consensus, as well as probes into figures like Zachary Coburn and Enigma MPC. After years of back-and-forth, the SEC turned over thousands of documents, but the process hit a snag when it was revealed in 2025 that Gary Gensler’s text messages from October 2022 through September 2023 had been accidentally deleted. Further court filings exposed that the agency erased 21 phones from senior officials, complicating transparency efforts.
Coinbase’s frustration peaked as Armstrong connected the SEC’s missing messages to broader allegations that the Federal Deposit Insurance Corporation concealed critical evidence during the 2023 banking crisis. The case cast a spotlight on government agencies’ handling of records amid rising regulatory pressure on crypto projects. The court has now dismissed the case after the settlement, marking an end to a saga that once dominated headlines and clouded perceptions of regulatory fairness in crypto.
This resolution closes a chapter that underlined tensions between the crypto industry and regulators during a tumultuous period. The release of the documents could shed new light on internal SEC deliberations during Ethereum’s key transition. Meanwhile, Coinbase moves forward under increased scrutiny of federal oversight, reminding the market of the complex regulatory environment crypto firms must navigate.
