The US District Court for the District of Utah has dismissed the SEC’s case against DEBT Box without prejudice and imposed over $1.8 million in fines against the watchdog for bad faith conduct. The fines, which come in the form of attorney fees and costs, follow sanctions against the SEC for misrepresentations made to obtain emergency ex parte relief.
The court granted the SEC’s motion to dismiss the current case without prejudice, which will allow the agency to file a future related case in the same court before the same judge. DEBT Box and other defendants had argued that the case should be dismissed with prejudice to prevent the SEC from pursuing further enforcement actions against the firm. However, the firm said the ruling was a positive development.
DEBT Box added:
The court declined to dismiss the case with prejudice because the process is in its early stages, the defendants have not spent significant amounts on trial expenses, and the SEC’s enforcement activities are in the public’s interest. The SEC initiated enforcement action against DEBT Box in July 2023 over allegations of involvement in a $50 million fraud scheme. The regulator subsequently secured a temporary restraining order and asset freeze against the firm.
Later proceedings found that the SEC had provided misleading information to the court when it justified its orders, including incorrectly describing the recency of account closures and mistaking domestic transactions for international transactions.
In March, the court imposed sanctions on the SEC for its misconduct and ordered it to pay fines. At the time, the court ruled that the SEC could not refile its case — a decision that the SEC’s request for dismissal without prejudice has successfully reversed.
Nasdaq is deepening its push into tokenized markets with a $100 million investment in Payward,…
MoneyGram is pushing stablecoins beyond crypto trading and remittances with a new payment card designed…
Hunter Biden’s newly launched LAPTOP memecoin delivered exactly the kind of chaos critics warned about…
Jack Dorsey's Block is making another major move into regulated finance, applying to create a…
Some of the world's biggest AI platforms experienced overlapping service disruptions on Thursday, September 3,…
Official U.S. economic data is moving directly onto public blockchains. The U.S. Department of Commerce…