Key facts
- The SEC agreed to pay $150,000 to settle a FOIA lawsuit filed by History Associates Inc. on behalf of Coinbase.
- The lawsuit concerned SEC investigations into Ethereum and its shift to proof-of-stake.
- The SEC failed to fully respond to records requests, leading to the lawsuit in June 2024.
- The case revealed the accidental deletion of text messages from SEC Chair Gary Gensler and other top officials.
- The SEC will produce remaining responsive documents as part of the settlement.
- The lawsuit is expected to be dismissed upon completion of the document production.
The U.S. Securities and Exchange Commission (SEC) has agreed to pay $150,000 and produce outstanding documents to settle a Freedom of Information Act (FOIA) lawsuit. The suit was filed in June 2024 by History Associates Inc., acting on behalf of Coinbase, after the SEC failed to adequately respond to requests for records related to its investigations into Ethereum and its transition to a proof-of-stake system.
The litigation brought to light significant issues with the SEC's record-keeping, including the accidental deletion of text messages from SEC Chair Gary Gensler covering the period from October 2022 to September 2023. Further updates revealed that the agency had wiped data from 21 phones belonging to top officials, five of which were linked to staff targeted in the Coinbase case. The SEC had notified the National Archives about the deleted phones in July 2025.
Coinbase CEO Brian Armstrong drew parallels between this case and the FDIC's handling of evidence during the 2023 banking crisis, stating that the SEC's deletion of texts occurred during an "anti-crypto campaign." He emphasized the importance of transparency and accountability from government agencies.
Upon the SEC's completion of the remaining document production, the federal case is expected to be formally dismissed, concluding over two years of legal proceedings.