The U.S. Securities and Exchange Commission (SEC) has decided to terminate the lawsuit against cryptocurrency company DEBT Box. This is reported by The Block with reference to court documents.
According to court documents, SEC lawyers said, "The Commission has authorized the filing of a motion to dismiss this lawsuit without prejudice. All necessary steps will be taken in the near future."
Recall that in July 2023, the SEC accused DEBT Box of distributing securities without the required license. As a result, the SEC issued a temporary restraining order in August to freeze the company's assets, alleging that the platform was closing accounts.
However, the order was later lifted after the company presented evidence to the contrary. It was proved that the platform did not close accounts or transfer funds abroad.
After learning of the DEBT Box case, attorney John Deaton criticized the SEC's actions.
The impact of gross government overreach can’t be overstated. And the lawyers at the @SECGov are full of 💩 when they claim this was not intentional. @SECEnfDirector has already misled Congress. These lawyers were following SEC leadership. https://t.co/cJo6pVtnxn
— John E Deaton (@JohnEDeaton1) January 16, 2024
David Schwartz, CTO of #Ripple Labs, strongly criticized the SEC's actions as well.
I've just read over the documents in the Debt Box case and this is absolutely shocking behavior. The SEC went to a judge seeking an emergency order to paralyze several businesses and blatantly misrepresented facts to get it before anyone on the other side could defend themselves.
— David "JoelKatz" Schwartz (@JoelKatz) December 5, 2023
In December 2023, U.S. Federal Judge Robert Shelby warned #SEC lawyers of possible sanctions for misleading the court in the DEBT Box case. The regulator later admitted that some statements by its representatives were incorrect.
