US SEC Faces Scrutiny Over Lost Text Messages During Gensler’s Crypto Crackdown

The US Securities and Exchange Commission is embroiled in controversy after an internal investigation revealed the accidental deletion of Chairman Gary Gensler's text messages from a critical period of cryptocurrency enforcement actions. The SEC's Office of Inspector General found the agency's IT department failed to preserve records due to a combination of automated system errors and procedural failures.

Between October 2022 and September 2023, Gensler's government-issued device underwent an unauthorized factory reset after being incorrectly flagged as inactive. The blunder was compounded by the absence of proper backups and inadequate record-keeping protocols for senior officials. These lost communications coincide with some of the SEC's most aggressive regulatory actions against digital asset firms.