Summary
Defendants in the SEC’s case against DEBT Box are asking the court to sanction agency attorneys for lying to obtain a temporary restraining order. The SEC admitted to errors and defendants are moving to dismiss the case. The judge had previously ordered the SEC attorneys to explain why they shouldn’t be sanctioned for presenting false evidence. The TRO resulted in the shutdown of DEBT Box and caused disruption for its users. The SEC issued an enforcement action against DEBT Box in June for alleged fraud and securities law violations. The SEC and defendants are scheduled to appear in court on March 7.
Key Points
1. Defendants in the US Security and Exchange Commission’s case against Digital Licensing Inc., also known as DEBT Box, are seeking sanctions against agency attorneys for allegedly lying to obtain a temporary restraining order.
2. Federal judge Robert Shelby ordered SEC attorneys to explain why they should not be sanctioned after presenting false and misleading evidence.
3. The SEC’s alleged deception resulted in a ten-day freeze of defendants’ assets, causing significant disruption to DEBT Box and affecting around 300,000 users in over 130 countries.