SEC Loses Gary Gensler’s Correspondence Due to IT Department Error

Some dialogues concerned enforcement in the crypto industry.

SEC lost the correspondence of former chairman Gary Gensler from October 2022 to September 2023, which also pertained to crypto regulation.

An internal investigation revealed that “preventable errors” by the IT department were to blame.

According to the Office of Inspector General’s report, the agency’s information technology department implemented an incorrect automation policy. This led to the complete deletion of data from Gensler’s work smartphone, including messages and system logs.

The issue was exacerbated by the lack of backups, ignored system alerts, and unresolved software errors. IT specialists were unable to determine why the device stopped syncing with the SEC’s mobile device management system.

The deleted messages contained information about the SEC’s enforcement actions against cryptocurrency companies. Some of the correspondence concerned the timing of lawsuits against trading platforms and their founders. This information may be lost to the courts and the public.

Investigators recovered about 1,500 messages from Gensler’s communications with colleagues. Approximately 38% of them directly related to the Commission’s work.

During Gensler’s chairmanship, the SEC actively fined financial institutions for data retention violations. At the time, the head of the agency stated that “finance depends on trust,” and failing to keep records undermines it.

The data loss may affect the agency’s responses to requests under the Freedom of Information Act. The SEC has already disabled SMS on most work devices and begun improving the backup system for senior officials.

Members of the crypto community noted that the messages disappeared during a critical period—from the collapse of FTX to the Grayscale lawsuit.

Former SEC Chair Gensler’s text messages from Oct 2022 to Sept 2023 are “missing”…

I’m serious.

Think about everything that happened in crypto during this time.

Basically FTX collapse thru Grayscale spot btc ETF lawsuit.

Makes you think. pic.twitter.com/FdgbRJbKSZ

— Nate Geraci (@NateGeraci) September 5, 2025

Caitlin Long, founder of Custodia Bank, wryly suggested whether the messages were “forever lost in a mysterious boating accident.”

So Gary Gensler’s text messages from his tenure as SEC chairman are forever lost in a mysterious ‘boating accident’???🤔

— Caitlin Long 🔑⚡️🟠 (@CaitlinLong_) September 4, 2025

Back in May 2025, former U.S. Congressman Patrick McHenry stated that Gensler privately showed a more balanced attitude towards cryptocurrencies than in his public speeches.