Judge orders SEC to pay $1.8 million to dismiss DebtBox lawsuit

• A judge has dismissed the US SEC’s lawsuit against Debt Box and ordered the SEC to pay $1.8 million in fees.
• The ruling points out the SEC’s bad faith conduct in obtaining asset freezing orders.
• Debtbox calls the court’s decision a major victory against regulatory overreach.

In a major legal victory for Digital Licensing, also known as DebtBox, a federal judge Fired The SEC’s civil lawsuit and Ordered It ordered the company to pay roughly $1.8 million in fees to regulators.

The ruling, handed down on May 28 by U.S. District Court Judge Robert Shelby in Utah, marks a notable rebuke of the SEC’s conduct in the case.

Digital Products The recipient, the US SEC

The fees include approximately $1 million in attorneys’ fees and expenses and another $750,000 in recipient’s fees and expenses.

The order follows a court ruling in March that found the SEC had acted in “bad faith” by seeking a temporary injunction to freeze Debtbox’s assets based on inaccurate information. The misconduct led the court to threaten sanctions against the SEC.

Judge Shelby’s ruling required the SEC to pay all attorneys’ fees and costs incurred as a result of its erroneous ex parte relief award, except for the $649 fee it deemed improper.

Debt box, A statement released via Xhailed the ruling as a major victory, saying, “This is a huge win for us. It means the SEC cannot move forward with the case as it stands.”

Digital Products What was the Deadbox incident?

The SEC first filed its lawsuit in July 2023, accusing Debtbox of orchestrating an illegal cryptocurrency fraud worth $50 million.

But Debtbox countered with documents suggesting that the SEC made false statements and misrepresentations that led to the improper injunction.

The incident garnered significant attention within the cryptocurrency community and highlighted the issue of regulatory overreach.

Meanwhile, the SEC continues to take legal action against several other cryptocurrency companies, including: Binance, Kraken, Rippleand Coinbase.

In response, lawmakers have advocated for a clearer regulatory framework for digital assets, with bills such as the 21st Century Financial Innovation and Technology Act aiming to address these concerns.