SEC “Deeply Regrets” Handling of Debt Box Case, New Court Filing Reveals
The United States Securities and Exchange Commision (SEC) has apologized for its handling of a lawsuit against decentralized blockchain project, Debt Box, according to new court documents.
“The Commission takes this Court’s concerns seriously and deeply regrets these errors,” a court filing from December 21st reads. “Agency officials are taking steps to ensure those errors are not repeated in this action or other proceedings.”
The SEC originally filed a lawsuit against Debt Box in July alleging the digital currency operation defrauded thousands of investors out of nearly $50 million through the sale of unregistered securities.
Previously, the federal watchdog was granted a temporary restraining order against Debt Box after claiming the organization was dodging legal actions by moving assets abroad. However, the order was rescinded in October after the court found the SEC had insufficient evidence to back up its claims.
Judge Robert Shelby, Chief United States district judge for the District of Utah, criticized lawyers representing the SEC earlier this year for “false or misleading” statements against Debt Box, claiming that they “undermined the integrity of the case’s proceedings” which resulted in “irreparable harm” to the defendant.
Moreover, Shelby hinted at the possibility of sanctioning the SEC for its misconduct, a factor the federal agency argues against in the latest court filing.
“As explained, the Commission takes very seriously the concerns identified by the Court,” the SEC’s lawyers stated. “In response to the Court’s order to show cause, the Commission has identified errors and lapses in judgment that it will take steps to remedy. But sanctions are not warranted under the circumstances here.”
News of the SEC’s
