Federal Judge Rules in Favor of Crypto Company, Says SEC Committed a "Gross Abuse of Power"

    NEW YORK, NY, May 31, 2024 /24-7PressRelease/ -- A federal judge ruled that the U.S. SEC must pay the legal fees for Utah-based crypto DEBT Box after finding an abusive use of power in its attempts to secure a temporary restraining order.

The SEC sued the crypto company last year for fraud, securing a temporary asset freeze against the company. The SEC believed DEBT Box was telling customers it was selling licenses to mine cryptocurrency but was just creating tokens with code.

Chief Judge Robert Shelby, from the District of Utah, wrote that the SEC's attorneys misled the court in the temporary restraining order. He ruled that the SEC would be required to pay defendants' and receivers' fees as part of the court sanctions.

DEBT Box is not the only crypto entity that is fighting back against the wrong and baseless legal threats and lawsuits against their firms. Digital Currency Group's former CEO Barry Silbert has also filed a motion to dismiss the Attorney General's accusations of concealing losses.

False claims against crypto firms can severely damage reputations, causing leaders to often resign from their positions.

The ruling Judge Shelby serves as a significant blow to the U.S. Securities and Exchange Commission, highlighting the potential repercussions of what is perceived as an abusive use of regulatory power. The court's decision not only exonerates DEBT Box but also highlights the importance of due diligence and fair legal proceedings within the crypto space.

As the industry continues to evolve, the need for transparency, accountability, and fair treatment in regulatory enforcement becomes ever more crucial. Only through a balanced and informed approach can crypto thrive and fulfill its potential as a transformative force in the global economy.

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