Connect with us

Hi, what are you looking for?


Judge Throws Out DEBT Box Case, Orders SEC to Pay $1.8M

The US District Court for the District of Utah on Tuesday threw out the SEC’s case against DEBT Box and imposed fines exceeding $1.8m on the regulatory body for its bad faith actions.

The fines cover legal fees and court costs. This penalty follows the court’s finding that the SEC misled the judge to get a temporary order in its favor.

In the same May 28 filing, Judge Robert Shelby approved the SEC’s request to dismiss the ongoing case without prejudice, enabling the agency to file a related case in the same court before the judge at a later time.

DEBT Box and its co-defendants argued that the case should be dismissed with prejudice to bar the SEC from initiating additional enforcement measures against the company. Nonetheless, the company expressed satisfaction with the ruling, considering it a favorable outcome.

“This is a significant win for us. It means that the SEC cannot proceed with the case as it stands,” the firm said on X.

We have some fantastic news to share with our D.E.B.T. Box community today!

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…

— D.E.B.T. (@TheDebtBox) May 28, 2024

Debt Box Challenges SEC’s $49M Fraud Case

The judge cited a March ruling, where it said the SEC acted in bad faith when it got a temporary freeze on DEBT Box’s assets. The firm later went to court alleging the commission’s information was wrong, which could result in sanctions against the SEC.

In a July 2023 lawsuit, the SEC alleged that Debt Box ran a fraudulent $49m scheme selling “node licenses” that promised profits from mining cryptocurrencies. The SEC claims these currencies were never actually mined, casting doubt on the entire operation’s validity.

The DEBT Box case underwent an unexpected twist when the defendants contested the SEC’s allegations. The regulatory body had obtained a temporary restraining order to freeze the assets of the crypto platform. However, the defendants accused the SEC of distorting facts to get it.

In response, Judge Robert Shelby demanded an explanation from the SEC regarding its actions. Confronted with scrutiny, the SEC’s attorneys admitted errors but appealed to the judge to refrain from imposing formal sanctions.

The post Judge Throws Out DEBT Box Case, Orders SEC to Pay $1.8M appeared first on Cryptonews.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Real gross domestic product rose at a revised 3.2 percent annualized rate in the third quarter versus a 0.6 percent rate of decline in...

    Editor's Pick

    For years the North Korean playbook was obvious to the world. The Democratic People’s Republic of Korea wanted to be the center of attention....

    Editor's Pick

    On April 23, 1985, the Coca-Cola Company made one of the biggest mistakes in American business history: it changed the formula for Coca-Cola. Outraged...

    Editor's Pick

    In Risky Business: Why Insurance Markets Fail and What to Do About It (Yale University Press, 2023), economists Liran Einav (Stanford), Amy Finkelstein (MIT),...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024