Debt Box vs SEC: Court Reverses Asset Freeze, Raises Questions on SEC's Conduct
The United States Securities and Exchange Commission (SEC) has filed a complaint against Debt Box and other defendants, alleging that the firm was engaged in a fraudulent conspiracy to offer unregistered securities to investors. The action is being brought against Debt Box and other defendants. In August of 2023, the Securities and Exchange Commission (SEC) won a temporary asset freeze and restraining order against Debt Box, its four proprietors, and thirteen additional defendants. The SEC said that the scam was responsible for the raising of about fifty million dollars, in addition to undefined sums of Bitcoin and Ether. According to the Securities and Exchange Commission (SEC), Debt Box was accused of selling «node licenses» that were represented as a mechanism to earn crypto asset tokens via mining operations. However, the SEC said that these «node licenses» were, in fact, a counterfeit.
Concerns Regarding the SEC's alleged misrepresentation
A federal court in Utah overturned the asset freeze on November 30, 2023, citing the fact that the Securities and Exchange Commission had misrepresented facts as the reason for the decision. This was a momentous turn of events. As the Securities and Exchange Commission (SEC) had claimed, the court determined that Debt Box did not freeze bank accounts or seek to relocate to the United Arab Emirates. According to the court, a transfer of $720,000 that the Securities and Exchange Commission (SEC) alleged was moved abroad was, in fact, made inside the United States.
The Motion to Dismiss filed by Debt Box
Following the disclosure of this information, Debt Box submitted a request on December 4 to dismiss the case. In their motion, they said that the SEC «got this case wrong» and
Read more on blockchain.news
