SEC to Pay $1.8 Million in Fees Following Dismissal of Case Against Debt Box

The US District Court for the District of Utah dismissed the SEC's case against Digital Licensing, which operates under the name Debt Box.

The judge also ordered the SEC to pay approximately $1.8 million in attorney and receivership fees.

The SEC ordered him to pay $1.8 million in fees

In a post on Passes by Judge Shelby.

As reported on May 28 DepositJudge Shelby ordered the SEC to pay approximately $1.8 million for attorney's fees and costs and $750,000 for receiver's fees and costs. This ruling coincided with the chapter To the case without bias.

The decision stems from a March ruling in which the court found the SEC guilty of “bad faith conduct” in connection with a temporary restraining order and freeze on Debt Box assets. This came after the SEC initiated legal proceedings against Debt Box in July 2023, alleging its involvement in a $50 million illegal cryptocurrency scheme.

Debt Box responded to the SEC's allegations by submitting documents asserting that the SEC's information was inaccurate, leading to the threat of sanctions. The sanctions require the agency to cover “all attorneys’ fees and costs arising from a subsidy that was unilaterally improperly provided.”

However, the regulator attempted to evade the sanctions by contesting the accusation of acting in bad faith. In January, the SEC attempted to end the case, asserting that the penalties were unjustified. In an earlier ruling, Judge Shelby determined that the SEC's legal representatives intentionally provided inaccurate information, knowing full well that they could not obtain the restraining order and asset freeze otherwise.

Regulatory overreach

This case sparked debates within the cryptocurrency community, with many viewing it as an example of regulatory overreach. The SEC is locked in ongoing legal battles with several cryptocurrency companies, including Binance, Kraken, Ripple, and Coinbase.

Amid these developments, several lawmakers in the US Congress called for regulatory clarity regarding digital assets and pushed for legislative measures.

🚀 We have some great news to share with the DEBT Box community today!

The U.S. District Court for the District of Utah formally dismissed the SEC case against us without prejudice. This means that the case is closed, and any future action by the SEC must proceed… pic.twitter.com/aGiNVxMYbz

– Debt (@TheDebtBox) May 28, 2024

The Debt Box team celebrated the court's decision, citing it as a “tremendous victory” for their company, the entire industry, and their community. They stressed the importance of integrity and justice in organizational practices.