The US Securities and Exchange Commission (SEC) confronted one more setback in court docket on Friday, December 1, 2023 with a federal decide reprimanded the company’s attorneys in case associated to a crypto agency. The decide reportedly expressed criticism of the SEC’s dealing with of the agency’s funds stating that the Commission made “materially false” representations to freeze property.
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“SEC Made False Representations”
According to a report by Fortune, the federal decide scolded the attorneys representing the US SEC over its dealing with of tens of millions of {dollars} price of property belonging to crypto agency Debt Box. The Utah court docket decide had expressed concern that the company made “materially false and misleading representations” to freeze tens of millions of {dollars} in property. The Court had requested SEC to indicate trigger as to why it shouldn’t be sanctioned for deceptive the Court.
The decide famous that the Commission’s deceptive actions brought on irreparable harm to the corporate, resulting in the freezing of property price tens of millions of {dollars}. The alleged deceptive and misrepresented information was introduced to the court docket by the US SEC with a purpose to get nod for a short lived restraining order in opposition to the crypto firm.
Legal Setbacks Add On
This comes after a number of of the authorized setbacks for the Securities and Exchange Commission in latest instances. The largest of authorized defeats got here within the type of the partial victory for Ripple within the XRP lawsuit abstract judgment, through which decide Analisa Torres dominated that the programmatic sale of tokens to retail clients didn’t qualify as securities.
On the opposite aspect, the US SEC is combating circumstances in opposition to prime crypto exchanges Binance and Coinbase ($COIN) over alleged operation of unregistered sale of securities on the platforms.
Also Read: Ripple CLO Spots ‘Troubling Pattern’ in SEC-Led Crypto Lawsuits
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