YEREVAN (CoinChapter.com) — The U.S. District Court for the District of Utah has delivered a blow to the Securities and Exchange Commission (SEC) by rejecting its lawsuit against Debt Box. The court has also ordered the SEC to pay approximately $1.8 million in attorney fees.
Judge Dismisses SEC’s Lawsuit Against Debt Box
The SEC accused Debt Box, officially known as Digital Licensing Inc., of running a $50 million illegal cryptocurrency scheme. The lawsuit, filed in July 2023, alleged that Debt Box’s activities violated securities laws.
Utah District Court Judge Robert Shelby ruled against the SEC’s lawsuit, criticizing the agency for freezing the company’s assets. This ruling prevents the SEC from continuing the case in its current form.
On Tuesday, he mandated the SEC to cover Debt Box’s attorney fees and related legal costs.
“In this order, the court ensures the final amount of fees requested by Defendants and the Receiver is reasonable,”
the filing stated.
In another filing the same day, the judge dismissed the case without prejudice at the SEC’s request.
“The Commission argues dismissal without prejudice is appropriate because it will protect investors and the public interest, and will not cause Defendants legal prejudice,”
the filing noted.
Court Victory
Debt Box shared this news with its community, stating,
“The U.S. District Court for the District of Utah formally dismissed the SEC’s lawsuit against us without prejudice. This means the case is closed, and any future action by the SEC must go through Judge Shelby.”
The Company emphasized the importance of this financial sanction, calling it “a step towards fairness and transparency.”
“Today’s decision is a victory for D.E.B.T. Box, the industry, and our dedicated community. It underscores the importance of integrity and fairness in regulatory practices.”
Developments in the SEC vs. Debt Box Case
Previously, a federal judge criticized the SEC’s conduct in a March filing, particularly concerning the agency’s actions in obtaining a temporary restraining order. This order included freezing assets and appointing a receiver to take control of Debt Box.
In April, two SEC lawyers leading the case against Debt Box resigned. The Utah judge had stated that the case was “marred by false statements and misrepresentations.”
In December, the SEC admitted to making inaccurate statements in the case. The agency acknowledged that it “fell short” of the expectations to be accurate and candid in court.
