Injustice Exposed: Federal Judge Blasts SEC's 'Gross Abuse of Power' in Crypto Case

In a recent ruling, a federal judge found the U.S. Securities and Exchange Commission (SEC) guilty of "gross abuse of power" in its lawsuit against DEBT Box, a crypto company based in Utah. The judge mandated that the SEC cover the legal costs for DEBT Box, emphasizing the regulator's misleading actions throughout the case.

SEC Files Fraud Charges Against DEBT Box, Both Parties Square Off Over Fund Movement in Court

The SEC had filed a lawsuit against DEBT Box last year, alleging fraud and obtaining a temporary asset freeze and restraining order against the company. According to the SEC, DEBT Box had misrepresented its activities to customers, claiming to sell cryptocurrency mining licenses while merely creating tokens with code. However, DEBT Box countered, asserting that the SEC had misrepresented facts to the court regarding the movement of funds and closure of bank accounts.

Utah Judge Criticizes SEC for Misleading Court and Focuses on TRO Procedure Fairness

Chief Judge Robert Shelby of the District of Utah criticized the SEC's legal representatives for misleading the court, both during the application for the temporary restraining order (TRO) and afterward when DEBT Box sought to dissolve the order. Judge Shelby's order highlighted the focus on the TRO issue rather than the underlying case.

American lawmakers fiercely criticized the Securities and Exchange Commission (SEC) and its chairman for refusing to provide clear regulation for the cryptocurrency industry

American legislators fiercely criticized the Securities and Exchange Commission (SEC) and its chairman Gary Gensler for refusing to provide clear regulation for the cryptocurrency industry. According to Jinse Finance, on Friday, US Representatives Patrick McHenry and Tom Emmer criticized the SEC and its chairman after the SEC rejected Coinbase's petition for clear cryptocurrency regulation.

Congressman Patrick McHenry commented on social media platform X, stating that it is shameful that SEC Chairman Gary Gensler continues to refuse clarity for the digital asset ecosystem. He questioned why the SEC continues to fail in court if the law supports its stance clearly. McHenry has been advocating for clear cryptocurrency regulation and will retire from Congress in January next year.

Another US Congressman, Republican Representative Tom Emmer from Minnesota, also fiercely criticized the SEC's rejection of Coinbase's petition. Emmer stated that the SEC's policy is not to provide more transparency to the market but to create chaos, which will erode our great capital markets. He believed this is wrong and clearly violates the SEC's duty.

U.S. Securities and Exchange Commission Faces Legal Fees Liability for Misleading the Court

As part of the court's sanctions, the SEC will be obligated to cover the legal fees of both the defendants and receivers involved in the case. The judge's order emphasized the Commission's repeated misrepresentations, characterizing them as false, mischaracterized, and misleading. Moreover, the SEC was accused of presenting new falsehoods to the court in an attempt to pivot from previous misrepresentations without acknowledging its errors.