Debt Box Projects crypto

A federal judge has issued a warning to the U.S. Securities and Exchange Commission (SEC), accusing the agency of making false and misleading statements to freeze the assets of crypto firm Digital Licensing Inc., also known as DEBT Box.

The SEC alleges that DEBT Box defrauded investors out of nearly $50 million by selling unregistered securities. However, the judge found that the SEC’s claims about DEBT Box closing bank accounts and moving operations to Abu Dhabi were false. The judge has demanded that the SEC explain its behavior and potentially face punishment.

The SEC obtained a temporary restraining order and asset seizure against DEBT Box through an ex parte application without informing the crypto firm or allowing it to challenge the proceedings. The judge criticized the SEC for its actions, stating that the agency’s misrepresentations have undermined the integrity of the case’s proceedings and caused irreparable harm to DEBT Box.

Furthermore, the judge expressed concern that the SEC accused DEBT Box of blocking investigators from viewing its social media sites without providing any evidence to support the claim. The judge concluded that the SEC may have deceived the court and violated Rule 11(b) by making false and misleading representations.

In response to the judge’s concerns, the SEC has been issued a “show cause order” demanding an explanation for its behavior. The order raises questions about the agency’s claims regarding closed bank accounts and social media blocking. The judge highlighted that the SEC’s false statements deprived the defendants of due process.

The recent order from the federal judge criticizing the SEC for misleading representation in the DEBT Box case raises concerns about the agency’s integrity. This case comes at a time when the SEC is involved in high-profile lawsuits against other crypto companies, fueling accusations of bias against the crypto industry.

The judge’s demand for an explanation and the potential for sanctions highlight the need for accountability and accuracy in regulatory actions. It remains to be seen how the SEC will respond to the judge’s order and what impact this might have on the ongoing crypto-related legal battles involving the agency.

Via: CoinTelegraph

By Joane

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