US Securities and Exchange Commission (SEC) lawyers have issued an apology to a judge for misrepresenting facts in a case involving a crypto firm.
The SEC lawyers expressed deep regret and acknowledged their errors in securing a restraining order and asset freeze against Digital Licensing Inc., also known as DEBT Box.
Regret And Corrective Actions In Crypto Lawsuit
According to a Fortune Magazine report, following the judge’s order to explain the reasons behind their missteps, the SEC lawyers submitted a filing to the US District Court of Utah.
In the filing, they stated that the Commission deeply regrets the issued orders and has taken measures to address the situation, including mandatory training for the staff members involved in the crypto investigation.
SEC Enforcement Chief Gurbir Grewal emphasized the agency’s appreciation for the responsibility entrusted to them when enforcing federal securities laws and admitted that the division fell short of the expected standards in this particular case.
The SEC’s legal rebuke stemmed from a lawsuit filed in July against the crypto fIrm DEBT Box, accusing the company of defrauding investors of approximately $50 million.
As reported by Bitcoinist, the SEC sought a temporary restraining order and asset freeze, alleging that the defendants were planning to relocate operations overseas to evade regulatory oversight.
The agency filed an ex parte application to prevent DEBT Box from emptying its bank accounts before the SEC could take action. However, after the judge approved the order, the defendants challenged the SEC’s representations,
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Author: Ronaldo Marquez
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