CryptoNews

SEC Ordered to Pay $1.8M for Misconduct — Debt Box Hails ‘Monumental Victory’ for Crypto Industry – Regulation Bitcoin News

A federal judge has ordered the U.S. Securities and Exchange Commission (SEC) to pay over $1.8 million in its case against the crypto firm Digital Licensing, also known as Debt Box. The penalty resulted from the SEC’s bad faith conduct in obtaining and defending an ex parte temporary restraining order (TRO) based on misrepresentations. Additionally, the judge granted the SEC’s motion to dismiss its case without prejudice.

Court Found SEC ‘Engaged in Bad Faith Conduct’

On Tuesday, Chief District Judge Robert J. Shelby of the United States District Court for the District of Utah issued two orders in the case of the U.S. Securities and Exchange Commission (SEC) against the crypto firm Digital Licensing Inc., also known as Debt Box.

One order requires the SEC to pay $1,821,824 in attorney fees and costs. This sanction was imposed due to the SEC’s bad faith conduct in obtaining and defending an ex parte temporary restraining order (TRO) and receivership, both of which were based on misrepresentations made to the court. The court document states that on March 18:

The court found the Commission engaged in bad faith conduct in obtaining and defending the TRO and imposed a sanction against the Commission of all attorney fees and costs arising from the improvidently entered ex parte relief.

Specifically, the SEC is ordered to pay $8,239 to Calmes & Co. Inc. and Calmfritz Holdings LLC, $19,015 to Matthew D. Fritzsche, $252,316 to iX Global Defendants, $153,365 to the FAIR Project Defendants, $34,260 to the Debt Box Defendants’ local counsel, $565,498 to the Debt Box Defendants’ lead counsel, $42,191 to Brendan J. Stangis, and $746,942 to the Receiver.

‘Today’s Decision Is a Monumental Victory’

The second court order issued by Judge Shelby grants the SEC’s motion to dismiss its case against Debt Box and associated individuals and entities without prejudice. This decision permits the SEC’s new team of attorneys to reassess the case, conduct further investigations, and decide whether to proceed with a new complaint. The court imposed the condition that any future related cases must be filed in the same court before the same judge, ensuring continued oversight and addressing concerns about potential legal prejudice.

Commenting on the court decisions, Debt Box posted on social media platform X on Tuesday: “The U.S. District Court for the District of Utah has officially dismissed the SEC’s case against us without prejudice. This means the case is closed, and any future action by the SEC would have to go through Judge Shelby.” The crypto firm added:

Today’s decision is a monumental victory, not just for D.E.B.T. Box but for the entire industry and our dedicated community. It underscores the importance of integrity and fairness in regulatory practices.

What are your thoughts on the judge ordering the SEC to pay $1.8 million and dismissing the case? Let us know in the comments section below.

Source: Bitcoin

Related posts
GamingNews

Funko Fusion hits Switch on September 13

AI & RoboticsNews

Meet Maxim, an end-to-end evaluation platform to solve AI quality issues

AI & RoboticsNews

Meta releases flurry of new AI models for audio, text and watermarking

DefenseNews

Small drones will soon lose combat advantage, French Army chief says

Sign up for our Newsletter and
stay informed!