Despite working normally, the device appeared inactive for the next 62 days, and IT staff failed to detect the issue.
When the Office of Information Technology introduced a policy in August 2023 to automatically wipe devices that had not connected for 45 days, Gensler’s phone was flagged as lost or stolen.
However, when the SEC staff attempted to restore the device, they mistakenly performed a factory reset. That error erased text messages covering Oct. 18, 2022, through Sept. 6, 2023.
The SEC later admitted that its recovery efforts could not fully restore the records, noting that some federal records were permanently lost. Since then, the agency has disabled text messaging across most staff devices, informed the National Archives in June 2025, and introduced new backup measures.
The officials also acknowledged that the loss may affect responses to Freedom of Information Act requests.
The crypto industry has reacted sharply to this report, noting that the missing messages span a critical period in market history.
“This isn’t some ‘oops’ moment. This was a destruction of evidence relevant to pending litigation. We all deserve better, especially from ‘leaders’ who see fit to smear others and cast aspersions so freely.”
“Multiple private companies should be tasked with monitoring and backing up regulators’ communications. Each company should post a fidelity bond, forfeited if they fail to meet the required service standards. This can’t keep happening.”
