After months of the United States Security and Exchange Commission (SEC) and the DEBT Box case, the SEC will now move to dismiss the lawsuit following false allegations against Digital Lincess, Inc. The SEC admitted to having brought inaccurate statements to the court.
The SEC sued DEBT Box in July, claiming the agency had defrauded its investors by transferring its assets worth $720,000 overseas. The SEC claimed that the agency had defrauded investors of $48 million through so-called node licensing, which brought funds after mining 11 tokens. However, on Tuesday, the SEC came clean at the court, saying that the agency had made errors that they would work to rectify. Moreover, the SEC asked Judge Robert Shelby to dismiss the case without prejudice, meaning that the agency could refile its case.
“While the Commission recognizes that its attorneys should have been more forthcoming with the Court, sanctions are not appropriate or necessary to address those issues,” concluded an SEC lawyer in a file case on Tuesday.
In the case that was presented to the court by the SEC on July 20, 2023, after a closer look by Judge Robert Shelby, he concluded that the SEC had misinterpreted the evidence claiming that DEBT Box had transferred $720,000 of their assets overseas. While the agency had transferred its assets to the United States. Judge Shelby presented the SEC with a “cause order,” which means to justify or prove themselves to the court.
The DEBT Box, however, is requesting Judge Shelby of the Northern Division District Court of Utah for additional sanctions against the SEC. Nonetheless, the SEC is pleading with the court to reject the sanction, claiming sanction is only rightful if the party committed a willing misconduct, which is not the case.
“The court got the case bad this time,” the DEBT Box lawyer said. The defendant went on to state that the TRO that was issued to them by the court brought damages to the agency. Leading to a 56% native token crush and the complete disruption of 300,000 users in over 100 countries worldwide.
The SEC has been taking action against crypto firms, saying that they do not operate under the regulations of the United States, while their chair, Gary Gensler, says that cryptocurrencies are securities. However, the SEC is arguing that the court should not give more sanctions, concluding that it will be an extreme punishment. “We will take further steps to rectify these issues and errors,” said the SEC lawyers.