The U.S. Securities and trade fee confronted embarrassing feedback from a federal choose in Utah on December 1, 2023 in a case involving mishandling of belongings price thousands and thousands of {dollars} belonging to a crypto firm. This marks a sequence of authorized setbacks the company has confronted within the final three hundred and sixty five days, the most important of which is the XRP lawsuit verdict delivered in July 2023. In 2023 alone, the Debt Box debacle turns into the third such setback for the Commission.
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US SEC Faces Sanctions Threat
Earlier, CoinGape reported {that a} federal choose closely criticized the alleged misrepresentation of details by the Commission in its try and get a brief restraining order for freezing funds belonging to crypto agency Debt Box. In the court docket order, the choose talked about that the Commission made “materially false and misleading representations” to freeze thousands and thousands of {dollars} price of belongings belonging to the corporate. With this, the SEC attorneys face the hazard of getting sanctioned by the Utah court docket.
Prior to this, the SEC was severely criticized for its actions in opposition to crypto firms in a number of court docket proceedings. Here are among the court docket feedback in opposition to the SEC in latest instances, as described by Stuart Alderoty, Chief Legal Officer of Ripple as a “troubling pattern.”
July 12, 2022
In the Ripple Vs SEC lawsuit, the court docket stated the SEC “demonstrated hypocrisy” by making inconsistent arguments to the Court. This is available in shut parallel with the December 1, 2023 Debt Box case proceedings by which the choose stated the SEC misled the court docket resulting in irreparable hurt to the corporate. In the Ripple lawsuit continuing, the court docket additionally stated the SEC was not appearing out of a devoted allegiance to the legislation.
June 6, 2023
In response to crypto trade Coinbase’s appeal to compel the US SEC to react to its petition on crypto rulemaking, the Court sided with the trade stating that “the SEC defaulted on its duty to respond in good faith” to the petition.
August 29, 2023
The US Court of Appeals for the District of Columbia Circuit gave Grayscale a win in opposition to the SEC within the lawsuit over changing the Grayscale Bitcoin Trust to a spot Bitcoin ETF. By rejecting the Grayscale utility, the SEC was concerned in “inconsistent treatment of similar products” and added the the SEC officers had been appearing in an “arbitrary and capricious” method.
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