A federal judge has mandated that the United States Securities and Exchange Commission (SEC) pay approximately $1.8 million in attorney and receivership fees associated with its civil case against Digital Licensing, known as Debt Box.
On May 28, Judge Robert Shelby of the U.S. District Court for the District of Utah issued an order for the SEC to cover around $1 million in attorney fees and costs, and $750,000 in receiver fees and costs. This order coincided with the dismissal of the case without prejudice on the same day.
The judge referenced a March decision where a court determined the SEC had acted in "bad faith" when obtaining a temporary restraining order to freeze Debt Box's assets. Debt Box subsequently submitted evidence indicating inaccuracies in the SEC's information, leading to the threat of sanctions against the commission.
The sanctions required the SEC to pay "all attorney fees and costs arising from the improvidently entered ex parte relief." Judge Shelby approved all costs requested by the defendants, except for a $649 fee.
Debt Box declared this a "significant win" in a May 28 post on X, noting that the SEC could not continue with the case in its current form.
The SEC had accused Debt Box in July 2023 of orchestrating an illegal $50 million crypto scheme. However, the company provided documentation suggesting the SEC had made false statements and misrepresentations to obtain the restraining order. This case has been highlighted in the crypto community as an instance of regulatory overreach.
The SEC is also pursuing lawsuits against other crypto firms such as Binance, Kraken, Ripple, and Coinbase. Meanwhile, several U.S. lawmakers are advocating for clearer regulations on digital assets through legislation like the Financial Innovation and Technology for the 21st Century Act.
May 2024, Cryptoniteuae