Summary
The Securities and Exchange Commission (SEC) is seeking to dismiss its lawsuit against crypto startup DEBT Box after admitting to making inaccurate statements in court. The agency plans to dismiss the action without prejudice, allowing them to refile the case later. The SEC had previously claimed that DEBT Box was attempting to move assets overseas to evade regulation, but the court ordered the agency to explain the “false or misleading” statements. The SEC also stated that sanctions were not warranted. The agency has filed multiple lawsuits against crypto firms in recent years, with Chair Gary Gensler asserting that most cryptocurrencies are securities. The SEC’s suit against DEBT Box alleged that the company defrauded investors of at least $49 million.
Key Points
1. The Securities and Exchange Commission (SEC) is planning to dismiss its lawsuit against crypto startup DEBT Box after admitting that inaccurate statements were made in court.
2. The SEC initially sued DEBT Box in July, but now intends to dismiss the action without prejudice, allowing the agency to refile the case in the future.
3. The SEC lawyers acknowledged their failure to be accurate and candid in court, leading to criticism from Judge Robert Shelby, who ordered the SEC to explain false or misleading statements made about the company’s attempt to move assets overseas.