The U.S. <a href="https://www.sec.gov/files/sec-oig-review-587-2025.pdf" target="_blank" rel="nofollow noopener">Securities and Exchange Commission</a> (SEC) has been hit by a major data loss, with nearly a year's worth of text messages from former Chair Gary Gensler now permanently erased. An internal report from the agency's Office of Inspector General (OIG) revealed that the messages were lost due to "<b>tech failures</b>" by the Office of Information Technology (OIT). The OIG's report states that a "<b>poorly understood and automated</b>" policy in 2023, which was meant to disable texting, ultimately led to the data wipe. Gensler discovered missing applications on his phone in September 2023, prompting OIT staff to perform a factory reset that resulted in the <b>permanent deletion</b> of his data. The OIG's investigation found that OIT had failed to back up his messages for nearly a year, specifically those sent between October 2022 and September 2023. This incident could have significant implications for the SEC's ability to fulfill public record requests. Following the review, the OIG has recommended that the SEC improve its management of mobile devices and federal records.
<h2>Implications and Recommendations</h2>
The loss of <a href="https://www.cryptoknowmics.com/news/altcoins-rally-amid-gary-genslers-sec-exit-market-hits-3-44t/" target="_blank" rel="noopener">Gensler</a>’s communications is a serious issue that raises questions about the SEC's record-keeping practices. The inability to retrieve these messages may impact the agency’s ability to respond to certain Freedom of Information Act (FOIA) requests, potentially undermining transparency. The OIG's report highlights a clear need for a more robust and reliable system for managing digital communications. The recommendations made by the OIG aim to prevent similar incidents in the future by strengthening the SEC's internal policies and procedures for handling official records on mobile devices. This event serves as a stark reminder of the challenges government agencies face in managing digital data and ensuring accountability.

SEC Cites "Tech Failures" for Lost Gensler Messages

The SEC has permanently lost nearly a year of Gary Gensler’s text messages due to tech failures, according to an OIG report.

SEC Cites "Tech Failures" for Lost Gensler Messages

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