{"id":46070,"date":"2025-09-06T05:01:49","date_gmt":"2025-09-06T05:01:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=46070"},"modified":"2025-09-06T05:01:49","modified_gmt":"2025-09-06T05:01:49","slug":"us-sec-under-fire-for-genslers-missing-texts-from-key-crypto-crackdown-period","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=46070","title":{"rendered":"US SEC Under Fire For Gensler\u2019s \u2018Missing\u2019 Texts From Key Crypto Crackdown Period"},"content":{"rendered":"
\n

The US Securities and Exchange Commission (SEC) is under fire after a recent report detailed a series of \u201cavoidable\u201d mistakes from the watchdog\u2019s IT department that resulted in the loss of records linked to crypto enforcement actions during Gary Gensler\u2019s tenure.<\/p>\n

IT \u2018Oopsie\u2019 Wipes Gensler\u2019s Texts<\/h2>\n

The SEC\u2019s Office of Inspector General (OIG) has shared the final report detailing<\/a> the findings of its review of the Office of Information Technology\u2019s (IOT) actions that led to the loss of former SEC Chairman Gary Gensler\u2019s text messages between 2022 and 2023.<\/p>\n

According to the September 3 report, the OIT implemented a \u201cpoorly understood and automated policy\u201d in August 2023 that caused \u201can enterprise wipe of Gensler\u2019s government-issued mobile device.\u201d<\/p>\n

\"crypto\"<\/p>\n

Seemingly, Gensler\u2019s government-issued device was erroneously flagged as inactive and had not been backed up for nearly a year. OIT \u201chastily performed a factory reset,\u201d which deleted text messages stored on the device and the device\u2019s operating system logs between October 18, 2022, and September 6, 2023.<\/p>\n

The incident was worsened after a series of \u201cadditional OIT actions, deficiencies, and missed opportunities, including a lack of backups and procedures that failed to consider record retention requirements for Capstone officials (such as Gensler),\u201d the report explained.<\/p>\n

The regulatory agency reportedly worked to recover or recreate the deleted text messages but was \u201cunable to collect or determine the entire universe,\u201d including some federal records<\/a>. The review found that around 38% of the recovered text conversations were mission-related and concerned matters directly involving SEC senior staff and\/or Commissioners at the time, making them records.<\/p>\n

Among the recovered messages, the SEC retrieved a May 2023 conversation involving Gensler, his staff, and the Director of the Division of Enforcement about when the SEC would file an action against certain crypto asset trading platforms and their founders.<\/p>\n

Crypto Leaders Call Out Prior SEC Leadership<\/h2>\n

On Thursday, crypto industry leaders and participants commented on the previous SEC leadership\u2019s \u201cmistake\u201d and the implications. Nate Geraci, chairman and president of The ETF Store, stated<\/a>, \u201cThink about everything that happened in crypto during this time. Basically FTX collapse thru Grayscale spot btc ETF lawsuit. Makes you think.\u201d<\/p>\n

Many noted<\/a> that the period of the deleted texts also overlaps with part of \u201cOperation Chokepoint 2.0,\u201d the SEC\u2019s enforcement actions against multiple crypto exchanges, the release of the SEC\u2019s Staff Accounting Bulletin No. 121 (SAB 121), and anti-crypto policies from other regulatory agencies.<\/p>\n

In an X threat, Coinbase CLO Paul Grewal criticized<\/a> the prior leadership for the apparent hypocrisy after \u201call the lecturing (\u2026) about data preservation. All the haranguing. All the self-righteousness.\u201d<\/p>\n

The CLO affirmed that \u201cthis isn\u2019t some \u2018oops\u2019 moment. This was a destruction of evidence relevant to pending litigation.\u201d The IOG report noted that the loss of the former chairman\u2019s text messages may impact the SEC\u2019s response to certain Freedom of Information Act (FOIA) requests.<\/p>\n

It\u2019s worth noting that Coinbase submitted a FOIA request in March asking how much the regulatory agency had spent on crypto-related enforcement actions. As reported<\/a> by Bitcoinist, the crypto exchange sought the supporting documentation used to create the current and past annual budget and performance reports.<\/p>\n

Additionally, it inquired about\u00a0the number of employees and third-party contractors who worked on these investigations and enforcement actions, and \u201cknow more about the previous SEC\u2019s infamous \u2018Crypto Assets and Cyber Unit\u2019 within the Enforcement Division.\u201d<\/p>\n

\u201cWe all deserve better, especially from \u2018leaders\u2019 who see fit to smear others and cast aspersions so freely,\u201d Grewal concluded.<\/p>\n

\"crypto,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The US Securities and Exchange Commission (SEC) is under fire after a recent report detailed a series of \u201cavoidable\u201d mistakes from the watchdog\u2019s IT department that resulted in the loss of records linked to crypto enforcement actions during Gary Gensler\u2019s tenure. IT \u2018Oopsie\u2019 Wipes Gensler\u2019s Texts The SEC\u2019s Office of Inspector General (OIG) has shared […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-46070","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/46070","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=46070"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/46070\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=46070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=46070"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=46070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}