SEC Deletes Text Messages of Former FTX Chairman
It has come to light that the U.S. Securities and Exchange Commission (SEC) has deleted text message records belonging to former FTX Chairman Gary Gensler amid the FTX bankruptcy proceedings. Representatives from the industry assert that this was not merely a mistake but rather an effort to conceal evidence.
A report issued by the SEC Office of Comptroller indicates that Gensler’s official mobile phone ceased syncing with agency systems on July 6, 2023. Following this, a new automatic policy enacted by the agency in August 2023 led to the deletion of all data on devices that had not been used for 45 days.
The report disclosed that the messages in question were initially retrievable; however, due to a factory reset accidentally performed by the IT team, all records from October 18, 2022, to September 6, 2023, were permanently erased.
This timeframe aligns with the significant period when FTX declared bankruptcy in November 2022, alongside the conviction of its founder, Sam Bankman-Fried, in November 2023. This development has sparked concerns of “obstruction of evidence” within the industry.
In response, Coinbase Chief Legal Officer Paul Grewal delivered a pointed remark, stating, “This is not an ‘error.’ This is the destruction of evidence related to ongoing cases. Those who readily accuse others should be held to a much higher standard of accountability.”
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