• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
Buy Neo Pepe
No Result
View All Result
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: World Liberty Financial Accuses Exchange Of Token Manipulation, Justin Sun Blacklisted
🚀 BUY NEO PEPE PROTOCOL 🚀
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: World Liberty Financial Accuses Exchange Of Token Manipulation, Justin Sun Blacklisted
Debt Box

Debt Box Fallout: Judge Penalizes SEC For ‘Abuse Of Power’ Over Crypto Firm

Christian Encila
by Christian Encila
1 year ago
·
Posted in Crypto News
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

A federal judge has sanctioned the US Securities and Exchange Commission (SEC) for its handling of a lawsuit against Utah-based crypto firm Debt Box. The case, which has become a lightning rod for the crypto industry, exposes the SEC’s aggressive enforcement tactics and raises questions about the agency’s use of legal tools.

Related Reading: Why Bitcoin Halving Could Bring Uncertainty To Mining Industry: An In-Depth Analysis

The saga began in July 2023 when the SEC accused DEBT Box of defrauding investors out of nearly $50 million by selling unregistered securities in the form of “node licenses” for crypto mining.

In a dramatic move, the agency secured a temporary restraining order (TRO) freezing Debt Box’s assets. This extraordinary measure, typically used when a defendant poses a flight risk or could destroy evidence, was granted without notifying the company.

SEC Rebuked: Judge Ruling Favors Debt Box In Dispute Over Misrepresentation

However, Debt Box fiercely contested the SEC’s narrative. They claimed the agency misrepresented key facts to obtain the TRO, alleging the exchange was not aware of the investigation and had no intention of fleeing the country.

Judge Robert Shelby, after reviewing the evidence, agreed. In a December order, he slammed the SEC’s actions as “bad faith conduct” and a “gross abuse of power.”

🚨 @GaryGensler’s SEC continues its losing streak in the courts.

A judge has ruled against the SEC in the DEBT Box case—imposing sanctions on the Commission for acting in bad faith.

This is one of the most alarming examples yet of Gensler’s abuse of power.

— Financial Services GOP (@FinancialCmte) March 18, 2024

The SEC initially admitted to mistakes and apologized for the “shortfall” in the case. However, they maintained their lawyers had not acted in bad faith and requested the judge waive sanctions.

This attempt at damage control proved futile. In a recent 80-page ruling, Judge Shelby not only sanctioned the SEC by requiring them to cover Debt Box’s legal fees related to the TRO, but also denied their motion to dismiss the lawsuit without prejudice.

Total crypto market cap at $2.3 trillion on the 24-hour chart by TradingView.com

This decision has significant implications. Firstly, it’s a major victory for the crypto exchange and a blow to the SEC’s enforcement record under Chair Gary Gensler.

Critics, including a group of Republican senators, have long expressed concern about the agency’s zealous approach to regulating the crypto sector. This case provides concrete evidence that the SEC’s methods might be overly aggressive.

Federal Court Imposes Sanctions on SEC for Misconduct in Debt Box Lawsuit

In a significant turn of events, the United States District Court has imposed sanctions on the Securities and Exchange Commission (SEC) for what has been described as a “gross abuse of power” in its…

— InvestorTurf (@InvestorTurf) March 18, 2024

Secondly, the ruling raises serious questions about the SEC’s use of TROs. Judge Shelby’s criticism highlights a potential for abuse.

DEBT Box Fallout Sends Ripple Effects Across Crypto Industry

The fallout extends beyond Debt Box. Leading crypto companies like Coinbase, currently embroiled in their own legal battles with the SEC, are watching closely.

This decision could embolden them to challenge the SEC’s tactics more aggressively. More broadly, it may lead to increased scrutiny of Gensler’s regulatory approach.

Coinbase Chief Legal Officer Paul Grewal tweeted:

“The Commission just foisted a bill onto every one of us for their litigation misconduct,” reflecting the industry’s concern and frustration.

However, it’s crucial to note that the judge’s ruling doesn’t rule on the firm’s guilt or innocence regarding the alleged fraud. The lawsuit will continue. Furthermore, the impact on other ongoing SEC cases against crypto firms remains to be seen.

Related Reading: Shiba Inu: Data Reveals Big Surge Edging Bitcoin, Ethereum Despite Setbacks

Featured image from Freepik, chart from TradingView

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Christian Encila

Christian Encila

Follow

Christian, a journalist and editor with leadership roles in Philippine and Canadian media, is fueled by his love for writing and cryptocurrency. Off-screen, he's a cook and cinephile who's constantly intrigued by the size of the universe.

Full Profile

Related Posts

crypto, stablecoin

Bank Of England Governor Shares ‘Multi-Money’ Vision Ahead Of Stablecoin Plan Consultation

48 minutes ago
Monthly Forecast: Grok's Predictions About the Next 1000x Cryptos

Monthly Forecast: Grok’s Predictions About the Next 1000x Cryptos

36 minutes ago
Bitcoin Hyper Heats Up as Its $HYPER Token Presale Nears $14M Raised: Is It the Next Crypto to 1000x?

Bitcoin Hyper Heats Up as Its $HYPER Token Presale Nears $14M Raised: Is It the Next Crypto to 1000x?

58 minutes ago
Strategy

S&P 500 Potential: Strategy Could See $16 Billion Inflows With Index Inclusion–Bloomberg

1 hour ago
Crypto

SEC’s Push For Crypto Clarity: New Rules On The Horizon To Address Industry Challenges

3 hours ago
WLFI

FOMO Ends In Pain: WLFI Whales Suffer Millions In Loses On Price Collapse

4 hours ago

Premium Sponsors

Press Releases

  • MemeCore七日暴漲 211%引爆熱度 Snorter Bot...

    2 hours ago
  • miner

    Is Bitcoin Investment Still Profitable? Use BTC Cloud...

    2 hours ago
  • miner

    ADA’s path to long-term success: Integrating with...

    14 hours ago
  • Bitget and Bitget Wallet Support Trading of Over 100...

    16 hours ago
  • miner

    XRP Price From a High of $3.65 to a Low of $2.72: How GMO...

    19 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Buy Neo Pepe

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.