U.S. Judge Calls Out SEC Over Misleading Claims in Debt Box Trial

• US Judge Considers Sanctions Against SEC Over False Arguments in Crypto Case
• Judge Threatens SEC Over Misleading Claims
• Debt Box Maintains its Integrity
• Origins of the Case Against Debt Box

US Judge Considers Sanctions Against SEC Over False Arguments in Crypto Case

In an ongoing case against crypto entity Debt Box, a US judge has issued a warning to the Securities and Exchanges Commission (SEC). The SEC's attorneys are facing potential sanctions for allegedly using misleading arguments to push for a temporary restraining order against Debt Box.

Judge Threatens SEC Over Misleading Claims

Chief Judge Robert J. Shelby of Utah made it clear in the court documents that the SEC attorneys could face sanctions for making misleading arguments about Debt Box's supposed plans to move its assets and funds of investors abroad. As a result, the court may freeze the project's bank accounts.

According to Judge Shelby's court order, the "misrepresentations" by the SEC lawyers undermined the integrity of the court proceedings and led to irreparable harm to Debt Box. The SEC and its attorneys have yet to respond to these allegations.

Debt Box Maintains its Integrity

On its part, Debt Box demonstrated that it had neither transferred funds outside the US nor closed its bank accounts before the SEC's hearing. Initially, a federal judge issued a temporary restraining order in August which restricted Debt Box's access to its assets. However, this order was later dissolved when Debt Box was able to disprove the allegations.

Origins of the Case Against Debt Box

The SEC sued Debt Box in July, accusing the company of planning to sell unregistered securities called node licenses from 2021. The commission alleged that Debt Box misled investors by claiming that these licenses would mine cryptocurrency that would subsequently increase in value. Instead, they were allegedly minting the crypto themselves using computer code. Debt Box, however, has vehemently denied these allegations.

Edited by Jonathan Stoker