BusinessPostCorner.com
No Result
View All Result
Wednesday, May 14, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Judge slams SEC for ‘gross abuse of power’ in crypto case, imposes sanctions

March 18, 2024
in Business
Reading Time: 3 mins read
A A
0
Judge slams SEC for ‘gross abuse of power’ in crypto case, imposes sanctions
ShareShareShareShareShare

On Monday, a federal judge took the unprecedented step of imposing sanctions on the Securities and Exchange Commission related to a lawsuit the agency brought against the Utah-based crypto company DEBT Box in July.

The case drew widespread attention after the defendants accused the SEC of misrepresenting key facts when the agency obtained a temporary restraining order to freeze assets on the crypto platform. After U.S. District Judge Robert Shelby ordered the SEC to explain its actions, lawyers for the agency admitted the SEC had committed errors, but asked Shelby not to issue a formal punishment.

In Monday’s decision, Shelby denied the SEC’s request, citing multiple instances of “bad faith” conduct and finding the agency responsible for a “gross abuse of power.” In the 80-page filing, Shelby imposed a sanction in the form of a requirement for the agency to pay for DEBT Box’s attorneys’ fees and costs related to the restraining order. The judge also denied the SEC’s motion to dismiss the lawsuit without prejudice, which would have meant the agency could bring the lawsuit again at a later date.

“[The SEC’s conduct] substantially undermined the integrity of these proceedings and the judicial process,” Shelby wrote.

DEBT Box

DEBT Box is a little known crypto firm that offered investment vehicles in the form of “node software licenses” that allowed customers to mine different digital assets. The SEC first sued the firm in July, alleging the project had defrauded investors out of nearly $50 million by selling unregistered securities. Before the case was unsealed, the agency took the drastic step of requesting an ex parte temporary restraining order—an extraordinary step that does not even notify the defendant of the proceedings, and is typically granted only when there is a serious risk they will destroy evidence or flee the U.S. In the DEBT Box case, SEC claimed the company was actively closing its bank accounts and seeking to move out of the country.

While Shelby initially granted the SEC’s request, lawyers for the defendants later flagged that the agency had misrepresented information in its request for the restraining order, including that the firm was aware of the investigation and was taking steps to flee the country. In a December order, Shelby asked the SEC to provide evidence to back up the restraining order.

A few weeks later, the agency filed a response admitting to mistakes, with SEC enforcement chief Gurbir Grewal apologizing for the “shortfall” in the case. Still, agency lawyers asked Shelby to waive sanctions, arguing that its staff had not engaged in “bad faith conduct.” In January, the SEC moved to dismiss the case without prejudice, once again arguing that sanctions were not appropriate and that case law dictated the agency could not be on the hook for monetary penalties.

Despite the agency’s apology, the case quickly became a lightning rod for both the crypto industry and sympathetic politicians who have long complained about the zealous campaign of enforcement against the blockchain sector under Chair Gary Gensler. In February, a group of Republican senators sent a letter to Gensler expressing concern over the lawsuit, arguing that trust in the agency was “undermined.”

Shelby’s ruling on Monday is a vindication for DEBT Box and the SEC’s critics, with the judge finding that the agency understood the critical evidence used to obtain the restraining order “lacked any basis.”

Still, Shelby wrote, “The Commission nonetheless advanced that evidence in deliberately false and misleading ways.”

A spokesperson for the SEC did not immediately respond to a request for comment.

Subscribe to Fortune Crypto to get daily updates on the coins, companies, and people shaping the world of crypto. Sign up for the newsletter for free.

Credit: Source link

ShareTweetSendPinShare
Previous Post

Why the profession needs to say no to NOCLAR

Next Post

Jensen Huang unveils new Nvidia super-chip before robots come onstage: ‘Everything that moves in the future will be robotic’

Next Post
Jensen Huang unveils new Nvidia super-chip before robots come onstage: ‘Everything that moves in the future will be robotic’

Jensen Huang unveils new Nvidia super-chip before robots come onstage: ‘Everything that moves in the future will be robotic’

TRUMP Coin Price Prediction: 27% Surge the Start of Recovery to Record Highs?

TRUMP Coin Price Prediction: 27% Surge the Start of Recovery to Record Highs?

May 9, 2025
Ultra wealthy Gen Zers are redistributing the millions of dollars they’ve inherited—Meet the money coaches helping them

Ultra wealthy Gen Zers are redistributing the millions of dollars they’ve inherited—Meet the money coaches helping them

May 10, 2025
Gold is booming – but how safe is it for investors, really?

Gold is booming – but how safe is it for investors, really?

May 13, 2025
US sanctions companies alleged to be shipping Iranian oil to China

US sanctions companies alleged to be shipping Iranian oil to China

May 13, 2025
China exports jump 8% in April despite tariffs

China exports jump 8% in April despite tariffs

May 9, 2025
The exact amount of ultra-processed food that raises your risk of heart disease and cancer

The exact amount of ultra-processed food that raises your risk of heart disease and cancer

May 8, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

Bitcoin Price Prediction: Peace Talks & Fed Hype Fuel 7K Setup

Bitcoin Price Prediction: Peace Talks & Fed Hype Fuel $107K Setup

May 14, 2025
Trump tax plan gains momentum in House before floor vote

Trump tax plan gains momentum in House before floor vote

May 14, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!