The SEC settles with Coinbase over its missing Gary Gensler texts
CoinDesk 2026-07-23 15:36:39
Context: The U.S. Securities and Exchange Commission (SEC) has agreed to settle a federal Freedom of Information Act (FOIA) lawsuit with History Associates Inc., which was working on behalf of Coinbase. The lawsuit, filed in June 2024, concerned the SEC's investigations into Ethereum and its shift to a proof-of-stake system, as well as earlier crypto enforcement actions. The SEC will pay $150,000 in fees and produce remaining records to resolve the case.
Key Facts
- The SEC agreed to pay $150,000 to settle the FOIA lawsuit over its investigations into Ethereum, as stated in a joint status report filed on July 22.
- History Associates Inc. had submitted three public records requests in 2023 seeking documents on SEC investigations into Zachary Coburn and Enigma MPC, as well as records on Ethereum's shift to a proof-of-stake system.
- The lawsuit compelled the SEC to hand over thousands of documents, including records and communications sent, received, or evaluated by then SEC Chair Gary Gensler concerning Ethereum's migration from a proof-of-work blockchain to a proof-of-stake network.
- The SEC's Inspector General reported that the agency accidentally deleted Gary Gensler's text messages from October 2022 to September 2023, and later court updates showed the agency wiped 21 phones belonging to top officials, including five belonging to staff members targeted in the Coinbase case.
- The settlement brings to a close more than two years of litigation over the document requests, and the case will be formally dismissed once the SEC completes production of the remaining records.