The U.S. Securities and Exchange Commission (SEC) has decided to abandon its lawsuit against Debt Box, a crypto company previously accused of defrauding investors of millions. This decision comes after the SEC acknowledged presenting misleading information in court, which undermines the agency's case and credibility.
SEC Requests Dismissal of Lawsuit
The lawsuit, originally filed against Digital Licensing Inc., also known as Debt Box, alleged that the company defrauded investors of at least $49 million. The SEC claimed that Debt Box offered "node licenses" for mining cryptocurrencies that were never actually mined. This lawsuit was part of the SEC's broader crackdown on cryptocurrency firms, led by Chair Gary Gensler, who has consistently stated that most cryptocurrencies are securities.
Admission of Inaccurate Statements
However, during the court proceedings, the SEC's attorneys admitted to falling short of the court's expectations for accuracy and candor. U.S. District Court Judge Robert Shelby in Utah criticized the SEC lawyers for making "false or misleading" statements and demanded explanations.
Judge Shelby specifically found the SEC's assertion that Debt Box was attempting to transfer assets overseas to evade U.S. jurisdiction to be misrepresented. As a result, he issued a "show cause order," requiring the SEC to provide a valid reason or explanation for its actions.
SEC's Response and Dismissal
In response to the court's order, the SEC filed a statement on Jan. 30, acknowledging its attorneys' lack of transparency and cooperation. However, the agency argued against imposing sanctions, stating that they were unnecessary to address the issues at hand.
Consequently, the SEC expressed its intention to dismiss the lawsuit without prejudice, which allows for the possibility of refiling the case in the future.
Questions and Reactions
The SEC's decision to seek dismissal without prejudice has raised concerns within the legal and financial sectors, considering the agency's aggressive stance on cryptocurrency regulation. Debt Box's legal team strongly criticized the SEC's actions, asserting that the agency had gotten the case "badly wrong" and should not be allowed to perpetuate a false narrative to avoid dismissal.
Despite admitting to inaccuracies and moving to dismiss the case, the SEC has refrained from providing further comments beyond its public filings.
What do you think could explain the SEC's inability to pursue this lawsuit? Feel free to share your thoughts and opinions on this matter in the comments section below.
CFTC
forbes.com
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China’s Evergrande Crisis – Forbes Advisor
How To
The best way online to buy gold or silver
To buy gold, you must first understand how it works. It is a precious metal that is very similar to platinum. It’s very rare and is used as money because of its durability and resistance to corrosion. It’s hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are designed for circulation in a country. They often have denominations like $1 or $5 or $10.
Bullion coin are not intended for investment. However, their value will increase with inflation.
They cannot be used in currency exchanges. A person can buy 100 grams of gold for $100. Each dollar spent earns the buyer 1 gram gold.
Next, you need to find out where to buy gold. There are many options for buying gold directly from dealers. First, go to your local coin shop. Another option is to go through a reputable site like eBay. Finally, you can look into purchasing gold through private sellers online.
Individuals who sell gold at wholesale and retail prices are called private sellers. When selling gold through private sellers, you pay a commission fee of 10% to 15% per transaction. You would receive less money from a private buyer than you would from a coin store or eBay. This is a great option for gold investing because you have more control over the item’s price.
Another way to buy gold is by investing in physical gold. While physical gold is easier than paper certificates to store, you still need to make sure it is safe. Physical gold should be stored in an impenetrable container, such a vault and safety deposit box to ensure its safety.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. Pawnshops are small establishments allowing customers to borrow money against items they bring. Banks typically charge higher interest rates than pawn shops.
You can also ask for help to purchase gold. Selling gold is also easy. You can contact a company like GoldMoney.com to set up an account and receive payments right away.
—————————————————————————————————————————————————————————————-
By: David Sencil
Title: Inaccuracies in Court Lead SEC to Drop Fraud Case Against Crypto Firm Debt Box
Sourced From: news.bitcoin.com/sec-moves-to-dismiss-lawsuit-against-crypto-company-debt-box-citing-inaccuracies-in-court/
Published Date: Wed, 31 Jan 2024 22:30:33 +0000
