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- Nearly a year of Gary Gensler’s texts were lost due to SEC IT failures.
- Missing period overlaps with the FTX collapse and major crypto lawsuits.
- Critics question SEC transparency and Gensler’s crypto crackdown legacy.
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The U.S. Securities and Exchange Commission (SEC) has admitted that nearly a year’s worth of text messages from former Chair Gary Gensler’s government-issued phone have gone missing. The period spans October 2022 to September 2023, a timeline that overlaps with the FTX collapse and other pivotal events in the crypto industry.
A Year of Messages Permanently Lost
According to the SEC’s Office of Inspector General (IG), the missing records were lost due to “avoidable” IT failures, including poor backup practices, weak change management, and unresolved vendor software flaws. Investigators found that the SEC’s Office of Information Technology failed to retain crucial log data, making it impossible to explain why Gensler’s phone disconnected from the agency’s systems.
From partial recovery efforts, officials managed to retrieve about 1,500 text messages, with nearly 38% deemed “mission-related.” Among them was a May 2023 exchange between Gensler, his staff, and the SEC’s Division of Enforcement about planned actions against crypto trading platforms.
Timing Sparks Questions Over FTX Collapse
Crypto analysts quickly pointed out the timing of the data loss. Nate Geraci, President of NovaDius Wealth Management, emphasized that the missing texts cover the same period as the collapse of FTX and the Grayscale spot Bitcoin ETF lawsuit. Geraci suggested the loss raises serious concerns about transparency and accountability within the SEC.
Adding to the controversy, past reports suggested Gensler may have engaged in discussions with Sam Bankman-Fried and other FTX executives before the exchange’s bankruptcy. Critics argue that these records could have shed light on the SEC’s handling of one of crypto’s largest failures.
Crypto Community Reacts to Gensler Legacy
Gensler’s tenure as SEC Chair was marked by a tough stance on cryptocurrencies, drawing sharp criticism from the digital asset industry. With Paul Atkins now stepping into the role under the Trump administration, the SEC’s tone may shift. Atkins has already stated that most cryptocurrencies should not be classified as securities, signaling a potential departure from Gensler’s crackdown era.
Also Read: FTX Creditors Warned of Phishing Scams Ahead of September 30 Payouts
The disappearance of Gary Gensler’s texts leaves more questions than answers for regulators, investors, and the crypto community. With critical crypto conversations erased during one of the industry’s most turbulent years, skepticism around the SEC’s transparency continues to grow.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
