Overview

• An OIG review found Gensler’s SEC phone stopped syncing on July 6, 2023, was flagged under a new 45‑day inactive‑device wipe policy on Aug. 10, and a Sept. 6 restoration attempt triggered a factory reset that erased texts from Oct. 18, 2022 through Sept. 6, 2023.
• Investigators cited missed alerts, rushed emergency change procedures, inadequate backups, and poor vendor coordination as causes; the IT incident review cost the agency more than $50,000 and referenced a known operating‑system bug that could break device management links.
• About 1,500 messages were reconstructed from other sources, and a partial review found roughly 38% were mission‑related federal records, including exchanges about crypto enforcement actions, a potential settlement with a major financial firm, and coordination on a commissioner appointment.
• The OIG warned the loss may hinder responses to FOIA requests, and the SEC informed the National Archives in June 2025 after disabling text messaging on most government devices and accepting five recommendations to tighten device management and record retention.
• Current Chair Paul Atkins ordered a review after being briefed, while crypto industry figures criticized the episode because the missing period overlaps with market turmoil including the FTX fallout.