On the 3rd of October, the Security Exchange Commission (SEC) allegedly took action against Debt Box. The SEC alleges that Debt Box engaged in unlawful securities offerings, making false claims, and misleading investors. As part of the enforcement action, the SEC has frozen Debt Box’s assets to protect investors. This development is a significant step in the regulatory crackdown on cryptocurrency-related fraud and underscores the SEC’s commitment to safeguarding investors in the rapidly evolving digital asset space.
Debt Box and the 18 individuals currently want the court to throw the case away after discovering that the SEC lawsuit lied to restrain the order against them. “The SEC should not be allowed to continue to spin a false narrative to avoid dismissal.” the Digital Licensing lawyer who operates as the Debt Box lawyer stated to the Court of Utah on Dec 4. He went ahead and said “This time the SEC got this case badly. Badly Wrong”
The SEC Accusations
The United States Security Exchange and Commission agency on August 3rd presented a freeze order, to the law court to freeze the Debt assets. They presented the case and won it temporarily, they told the court that the Debt Box would wire their assets and remove the evidence if notified of the freezing of assets imposed on them. The SEC went ahead and told the court that the Debt box mining licence tied to the real-world assets was unregistered security. Additionally, they claimed that the Debt Box were involved in the $50 million fraudulent crypto scheme, but, the Debt Box went ahead and denied the claims issued by the SEC.
he Debt box said that the motion brought forward by the Security Exchange Commission was not only false but also failed to meet the basic pleadings. However, the court went ahead and issued a statement saying that the SEC misinterpreted their evidence. The court stated that the claims of Debt Box wiring the assets to the United Arab Emirates were false, instead, they were domestically transferred. Moreover, Shelby, the U.S District Court for the District of Utah said, the SEC should suffer a penalty for their action.
Court Threatens the SEC
After issuing a materially false and wrong representation claim, the Court has threatened to take action against the SEC. U.S. District Court of District of Utah, Judge Robert Shelby, ordered the Security Exchange and Commission to show the cause as to why the court should not pose threats.
In July, the SEC requested a temporary restraining order against the Debt Box firm, after several hearings the court proceeded and granted the green light to the regulators, but, after following several defendants’ motions to dissolve the temporary restraining order, the court granted them. This was however after the court noticed that the firm posed no harm. Currently, the court is concerned as to where the security regulators obtained the TRO (temporary restraining order) against the Debt Box.