SEC Settles with Coinbase for $150,000 Over Missing Records

The U.S. Securities and Exchange Commission (SEC) has reached a settlement agreement to pay $150,000 to resolve a lawsuit regarding missing communications from former chair Gary Gensler. This settlement, stipulated in a court report filed on July 22, ends a two-year legal battle initiated by History Associates Inc. on behalf of Coinbase concerning the SEC's failure to fully respond to a Freedom of Information Act (FOIA) request.

The lawsuit, filed in June 2024, sought records related to the SEC's investigations into Ethereum, specifically documents concerning its transition from a proof-of-work blockchain to a proof-of-stake system. The settlement requires the SEC to produce any remaining responsive records to Coinbase.

Throughout the lawsuit, the SEC was compelled to disclose thousands of documents. However, significant revelations arose from the case, particularly concerning the deletion of messages from Gensler’s phone. In September 2025, the SEC's Inspector General reported the accidental deletion of text messages from Gensler, covering a crucial period from October 2022 to September 2023. The agency also disclosed that 21 phones belonging to various top officials were wiped clean, including those of individuals involved in the Coinbase case.

Brian Armstrong, CEO of Coinbase, framed the settlement as a substantial victory for the cryptocurrency industry, suggesting it underscores the need for transparency and accountability from regulators. He commented, "The Gensler SEC deleted texts at the height of the anti-crypto campaign... This is not only for us, but for every American and every American company expecting transparency and accountability from the government."

The case is expected to be formally dismissed once the SEC fulfills its obligation to produce the remaining records, concluding over two years of litigation over these document requests. The outcome may have implications for the SEC's future handling of similar requests and how it manages communications regarding significant developments in the cryptocurrency sector.

Key observers will be particularly interested in the SEC's compliance with the settlement, as well as any additional records that may be revealed that pertain to its previous enforcement actions in the cryptocurrency space.