SEC admits it was at fault in crypto case

The U.S. Securities and Exchange Commission (SEC) has admitted to making misleading statements in its lawsuit against crypto firm DEBT Box. Despite this, the agency continued to insist that the company’s assets be frozen.

What happened?

Earlier this month, the SEC accused DEBT Box of allegedly selling unregistered securities, alleging that it raised $50 million and an unspecified amount of Bitcoin and Ether from hundreds of investors. Alleging that the company’s assets and investor funds were illegally transferred abroad, the agency had asked for the Debt Box’s bank accounts to be frozen. Later, it was found that this claim was not true, and it was learned that the company did not move the funds outside the United States and did not close its bank accounts. In response, the court judge warned the SEC for the misleading allegations and considered sanctioning the institution’s lawyers. It gave the SEC two weeks to respond to questions raised by the judge.

He admitted he was wrong

In its response to the court on Thursday, the SEC admitted that some of its accusations were false, such as the allegation that DEBT Box closed a large number of its accounts in support of its request for a freeze order. Stating that it has taken measures to correct its mistakes, the institution stated that it will provide mandatory training to the personnel of the Executive Unit in this direction. Despite all this, the agency maintained that it was acting in good faith and reiterated its demand for a freeze.

Published: December 23, 2023 16:13Last Updated: December 23, 2023 16:14