SEC Backtracks on Debt Box Lawsuit, Facing Accuracy Issues in Court The U.S. Securities and Exchange Commission (SEC) is
withdrawing its legal battle against crypto firm Debt Box, after admitting to
inaccurate statements made during the case.
Initially targeting Digital Licensing Inc., operating as Debt Box, the SEC accused the company of
defrauding investors of $49 million by offering unmined "node licenses." This was part of Chair Gary Gensler's broader crackdown on crypto, asserting most are securities.
However, things took a twist when Judge Robert Shelby criticized the SEC's lawyers for
misleading claims and demanded explanations. The agency had alleged an asset transfer overseas to dodge U.S. jurisdiction, which the judge found misrepresented.
In response to the court's order, the
SEC filed a statement acknowledging its shortcomings but argued against
sanctions, opting instead to dismiss the lawsuit without prejudice.
The SEC's move has raised eyebrows in legal and financial circles, given its tough stance on crypto regulation. Debt Box's legal team fired back, calling out the agency for getting it "badly wrong" and pushing a false narrative.
While the SEC has remained tight-lipped beyond its filings, this development leaves room for speculation about future actions in the ever-evolving world of cryptocurrency regulation.
