SEC Texts Lost During FTX Collapse: Report Reveals Preventable Errors

A new report from the Inspector General reveals that Gary Gensler’s text messages were lost during the FTX collapse due to preventable errors. The SEC’s phone system mistakenly wiped his device on July 6, 2023, after it stopped syncing, leading to a loss of all data dating back to October 18, 2022. This was followed by a factory reset attempt by the IT team which erased messages from October 18, 2022, to September 6, 2023. The timing of the lost texts coincided with the FTX collapse and its aftermath. Experts including Coinbase CLO Paul Grewal condemned this as ‘destruction of evidence’ relevant to pending litigation.