Key Takeaways:
- A federal judge ordered the SEC to pay $1.8 million due to “bad faith conduct” in a case involving DEBT Box.
- The SEC’s Salt Lake Regional Office closed, with operations moving to Denver, following the judge’s decision.
- The SEC’s lawsuit against DEBT Box was dismissed, with the SEC mandated to pay significant legal fees.
A federal judge ordered the U.S. Securities and Exchange Commission (SEC) to pay $1.8 million following “bad faith conduct” related to a temporary restraining order to freeze DEBT Box’s assets.
This decision led to the closure of the SEC’s Salt Lake Regional Office due to “significant attrition,” with operations shifting to Denver.
The SEC has decided to close its Salt Lake City regional office later this year. The office is behind a botched case against digital platform Debt Box. https://t.co/UH5N4fslwR via @_MengqiSun
— Risk & Compliance Journal (@WSJRisk) June 4, 2024
Judge Robert Shelby dismissed the SEC’s lawsuit against Digital Licensing (DEBT Box), mandating the SEC to pay $1 million in attorney fees and $750,000 in receiver fees.
The lawsuit, filed in July 2023, accused DEBT Box of a $50 million crypto scheme.
The SEC has just announced that it is closing its Salt Lake City Regional office.
— MetaLawMan (@MetaLawMan) June 4, 2024
One of the reasons given is the office "recently has experienced significant attrition."
The Salt Lake office was responsible for the Debt Box Debacle.https://t.co/L6zGQFIXXp
However, the judge found the SEC acted in bad faith, resulting in sanctions.
The case’s handling led to the resignation of two SEC lawyers. DEBT Box’s Chief Marketing Officer claimed the SEC’s office closure was in response to the misuse of power.
Judge Shelby orders the #SEC to pay $1.8 million in damages for abusing its power against crypto company 'Debt Box'. Throws it out of court. Huge loss for Gensler.
— MartyParty (@martypartymusic) May 28, 2024
Tax payer money paying this fine. https://t.co/WT6NsLQIAC pic.twitter.com/3RT52p2EW9
Despite this, the SEC continues to pursue actions against other crypto firms, including Coinbase, Binance, Kraken, and Ripple.
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