{"id":9953,"date":"2025-09-05T19:11:56","date_gmt":"2025-09-05T19:11:56","guid":{"rendered":"https:\/\/bitunikey.com\/news\/sec-under-fire-after-gary-genslers-texts-wiped-during-ftx-collapse\/"},"modified":"2025-09-05T19:12:16","modified_gmt":"2025-09-05T19:12:16","slug":"sec-under-fire-after-gary-genslers-texts-wiped-during-ftx-collapse","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/sec-under-fire-after-gary-genslers-texts-wiped-during-ftx-collapse\/","title":{"rendered":"SEC under fire after Gary Gensler\u2019s texts wiped during FTX collapse"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">\u201cPreventable errors\u201d led to the loss of Gary Gensler\u2019s text messages during the crucial period of the FTX collapse, a new report shows.<\/p>\n<div id=\"cn-block-summary-block_cc4ea81092d2450ca9246c7dea547707\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>The Inspector General\u2019s report shows the list of errors that led to the loss of Gary Gensler\u2019s texts. <\/li>\n<li>Texts lost were those during the period of the FTX collapse, causing criticism<\/li>\n<li>Coinbase CLO called the scandal \u201cdestruction of evidence\u201d<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<p>The SEC lost all the messages from the former Chair, Gary Gensler\u2019s official mobile device due to preventable errors, a new report shows. Inspector General\u2019s <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/files\/sec-oig-review-587-2025.pdf\" target=\"_blank\" rel=\"nofollow\">Report No. 587<\/a>, dated September 3, states that IT errors and poor oversight led to the loss of Gensler\u2019s texts during the crucial period of the FTX collapse.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">The headline from a SEC report on the loss of Gary Gensler\u2019s text messages | Source: SEC<\/figcaption><\/figure>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>According to the report, Gensler\u2019s phone stopped syncing with the agency\u2019s systems on July 6, 2023, due to an error. Afterward, his phone was automatically wiped, causing the loss of all data. This was due to a policy introduced in August that required automatically wiping any phone disconnected from the system for 45 days.<\/p>\n<p>At this point, recovering the messages would still have been possible, the report says. However, when the IT team tried to restore the phone, they mistakenly performed a factory reset. This erased all messages from October 18, 2022, through September 6, 2023.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<h2 class=\"wp-block-heading\">Gary Gensler\u2019s text scandals condemned by crypto leaders<\/h2>\n<p>The dates of the texts significantly overlapped with the collapse of FTX. Notably, the crypto exchange declared bankruptcy in November 2022, while its founder, Sam Bankman-Fried, was convicted in November 2023. This led to widespread criticism from industry experts, including Coinbase\u2019s CLO Paul Grewal.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>This isn\u2019t some \u2018oops\u2019 moment. This was a destruction of evidence relevant to pending litigation. We all deserve better, especially from \u2018leaders\u2019 who see fit to smear others and cast aspersions so freely, Paul Grewal, Coinbase <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/x.com\/iampaulgrewal\/status\/1963690400113447185\" target=\"_blank\" rel=\"nofollow\">said<\/a>. <\/p>\n<\/blockquote>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u201cPreventable errors\u201d led to the loss of Gary Gensler\u2019s text messages during the crucial period of the FTX collapse, a new report shows. Summary The Inspector General\u2019s report shows the&hellip;<\/p>\n","protected":false},"author":1,"featured_media":9954,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=9953"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9953\/revisions"}],"predecessor-version":[{"id":9955,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/9953\/revisions\/9955"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/9954"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=9953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=9953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=9953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}