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Court Rules SEC Acted in Bad Faith Against The Debt Box
The US District Court Judge Robert Shelby concluded a hearing by stating that the US Securities and Exchange Commission, also known as the SEC, had acted in bad faith against The Debt Box. The Utah Judge added that there was abuse of judicial process by the agency. This pertains to a case against The Debt Box that the Commission brought before the court in July last year, that is, 2023.
The Court has currently ordered the SEC to pay legal fees for the company while denying its motion to dismiss the charges without prejudice. The latter aspect is rather crucial, for it disables the Commission from refiling the case with the same charges. Reportedly, the agency did have plans to re-file the case and better present its side.
SEC Misrepresented Facts – Admits Error
It has been admitted by the Commission that they misrepresented the facts in an error. A reason why the case broke out is because the assets of The Debt Box were frozen under a temporary restraining order. The event has been detailed in an 80-page filing, highlighting that the conduct of the US SEC has substantially undermined the integrity of proceedings and the judicial process.
A case was filed against The Debt Box when the Commission claimed to have sniffed a fraud worth $50 million via the sale of unregistered securities. The Debt Box initially played along with the request, but the crypto company later flagged that the Commission had misrepresented the information to obtain a restraining order. The Commission accepted its mistake when the Court asked them to back their action with a piece of evidence.
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