SEC Lawyers Accused of Cheating in Anti-Crypto Case
YEREVAN (CoinChapter.com) — The Securities and Exchange Commission (SEC) suffered a major setback as the U.S. District Court for the District of Utah dismissed its lawsuit against Debt Box. Additionally, the SEC has been ordered to pay approximately $1.8 million in attorney fees.
Judge Dismisses SEC Lawsuit Against Debt Box
Debt Box, also known as Digital Licensing Inc., was accused by the SEC of operating an illegal cryptocurrency scheme worth $50 million. The lawsuit, filed in July 2023, alleged that Debt Box had violated securities laws.
Judge Robert Shelby of the Utah District Court ruled against the SEC’s lawsuit, criticizing the agency for freezing the company’s assets. This ruling puts a halt to the SEC’s case in its current form.
On Tuesday, the judge ordered the SEC to cover Debt Box’s attorney fees and related legal costs, as stated in the filing.
Another filing on the same day revealed that the judge dismissed the case without prejudice at the SEC’s request.
Court Victory
Debt Box shared the news of its court victory with its community, hailing the financial sanction as “a step towards fairness and transparency.”
Developments in the SEC vs. Debt Box Case
Earlier this year, a federal judge criticized the SEC’s conduct in a filing, particularly regarding the agency’s actions in obtaining a temporary restraining order. This order involved freezing assets and appointing a receiver to take control of Debt Box.
In April, the two SEC lawyers leading the case against Debt Box resigned. The Utah judge had stated that the case was plagued by false statements and misrepresentations.
In December, the SEC admitted to making inaccurate statements in the case, acknowledging that it had fallen short of the expected accuracy and candor in court.
