US SEC Faces Threat Of Court Sanctions Over Handling Of Crypto Firm
The US Securities and Exchange Commission (SEC) faced yet another setback in court on Friday, December 1, 2023 with a federal judge reprimanded the agency’s attorneys in case related to a crypto firm. The judge reportedly expressed criticism of the SEC’s handling of the firm’s finances stating that the Commission made “materially false” representations to freeze assets.
Also Read: SBF Trial: Bankman Fried Chooses Not to File Post-Trial Motions
“SEC Made False Representations”
According to a report by Fortune, the federal judge scolded the attorneys representing the US SEC over its handling of millions of dollars worth of assets belonging to crypto firm Debt Box. The Utah court judge had expressed concern that the agency made “materially false and misleading representations” to freeze millions of dollars in assets. The Court had asked SEC to show cause as to why it should not be sanctioned for misleading the Court.
The judge noted that the Commission’s misleading actions caused irreparable damage to the company, leading to the freezing of assets worth millions of dollars. The alleged misleading and misrepresented data was presented to the court by the US SEC in order to get nod for a temporary restraining order against the crypto company.
Legal Setbacks Add On
This comes after several of the legal setbacks for the Securities and Exchange Commission in recent times. The biggest of legal defeats came in the form of the partial victory for Ripple in the XRP lawsuit summary judgment, in which judge Analisa Torres ruled that the programmatic sale of tokens to retail customers did not qualify as securities.
On the other side, the US SEC is fighting cases against top crypto exchanges Binance and Coinbase ($COIN) over alleged operation of unregistered sale of securities on the platforms.
Also Read: Ripple CLO Spots ‘Troubling Pattern’ in SEC-Led Crypto Lawsuits
- Breaking: $10 Trillion Vanguard Plans to Offer Crypto ETFs to Brokerage Clients
- BlackRock Loads Up on Bitcoin, Files For Premium ETF to Increase BTC Yield
- Best 10 Crypto Cards for 2025
- Expert Projects HYPE Token Upside as Bitwise Files for Hyperliquid ETF With SEC
- Expert Says Crypto ETFs Could Be ‘Death-Knell’ for Treasury Firms MSTR, MTPLF, BMNR, SBET
- CHMPZ Price Prediction:Will This Net-Zero Community Token be the Next Gem?
- Is Ethereum Price Set for a rebound as Whale accumulation Intensifies?
- HYPE Price Prediction As Bitwise Files For Hyperliquid ETF – Is $55 In Sight?
- Shiba Inu Price Eyes Recovery From Demand Zone With Burn Rate Soaring Nearly 400%
- Bitcoin Price: Analyst Predicts Crash to $104K Before Explosive Rally on Fed Cut Pattern
- HBAR Price Elliot Wave Signals an 86% Rebound as Key Risks Remain
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
