Fun

SEC tries again for Debt Box suit dismissal with option to refile

News Feed - 2024-05-15 06:05:08

Derek Andersen2 hours agoSEC tries again for Debt Box suit dismissal with option to refileThe SEC says case dismissal without prejudice is “normally granted” when a plaintiff requests it, but the court has criticized the agency’s current suit.334 Total views13 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe United States Securities and Exchange Commission (SEC) has made another move in its attempt to have its case against cryptocurrency mining software firm Digital Licensing, doing business as Debt Box, dismissed. The agency filed a reply to its motion for the court to dismiss the case without prejudice, which would allow the agency to sue Debt Box again. 


The U.S. District Court for Utah Northern Division sanctioned the SEC for “gross abuse of power” and dismissed its first attempt to have the case dismissed without prejudice. It also ordered that Debt Box should receive reimbursement of legal fees. Debt Box asked the court not to dismiss the case without prejudice, calling the move a ploy to avoid permanent dismissal.The SEC reply in support of its motion to dismiss the Debt Box case without prejudice. Source: PACER


The SEC argued that the ability to refile an action was in the interests of Debt Box investors, and precedent showed that the court “normally should grant” a plaintiff’s request for dismissal without prejudice. It stated:“The SEC seeks dismissal without prejudice to allow the new team of attorneys assigned to the case to analyze the case file and take additional investigative steps before determining whether or not to proceed with a new complaint.”


The SEC’s lead attorneys in the case resigned after the agency was sanctioned by the court.


Related: US senators call SEC actions in Debt Box case ‘unconscionable’


If a dismissal were granted without prejudice, Debt Box sought to impose 11 conditions on the SEC if it refiled a case. The SEC agreed in whole or in part to most of those conditions. One condition was the use of a Wells notice—a warning from the SEC that intends to bring charges—and the completion of investigation files. The SEC sought to limit the material it would provide with the notice.Source: paulgrewal.eth


The SEC opposed a condition requiring it to provide Debt Box with all material it subpoenaed in the case and to have a representative present at non-subpoenaed interviews in the investigation. Finally, it opposed a condition to produce potentially exculpatory information—information that would be favorable to the defendant—from its investigation.


Debt Box is accused of defrauding investors of $50 million and selling unregistered securities in the form of licenses to use their software to mine digital assets.


The SEC temporarily froze the company’s assets in August. This decision led to the agency being sanctioned when the court found that it had used a “false narrative” relating to the company’s purported plans to relocate outside the United States to justify it. The SEC expressed its “deep regrets” over that action.


Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?# Fraud# Mining# Security# SEC# RegulationAdd reaction

News Feed

Cointelegraph Innovation Circle8 hours ago11 benefits blockchain explorers offer both individuals and companiesOffering both big-picture and detailed views of transactions, blockchain explorers are a powerful tool for bo
Crypto-like communication devices could break gov’t surveillance — Telegram founder
Arijit Sarkar36 minutes agoCrypto-like communication devices could break gov’t surveillance — Telegram founderPavel Durov, founder of Telegram Messenger, believes that governments’ decreasing tolerance toward priva
Michael Saylor Publishes Open Letter Discussing the ‘Sheer Volume of Misinformation’ Tied to Bitcoin
Michael Saylor Publishes Open Letter Discussing the "Sheer Volume of Misinformation" Tied to Bitcoin The Microstrategy executive Michael Saylor is a big believer in Bitcoin as his
Digital Asset Manager Bakkt Reveals Plans to Provide Ethereum Services
Digital Asset Manager Bakkt Reveals Plans to Provide Ethereum Services On November 5, Bakkt Holdings announced that the firm will soon let customers buy, sell, and store ethereum a
Bitcoin Leads Momentum as Top Cryptos Trade Below Key Price Average
Bitcoin (BTC) and Bitcoin SV (BSV) are the only cryptocurrencies within the top 10 by market capitalization to have jumped back above their long-term moving averages. The 200-day mo
Major Cryptocurrency ATM Manufacturer General Bytes Hacked, Over $1.5M in Bitcoin Stolen
Major Cryptocurrency ATM Manufacturer General Bytes Hacked, Over $1.5M in Bitcoin Stolen General Bytes experienced a security incident on March 17 and 18 that enabled a hacker to r
Tom Blackstone2 hours agoBlast network hits $400M TVL, rebuts claim that it’s too centralizedThe Blast team responded to claims that its multisignature upgrade functionality makes it too centralized.311 Total views3 To
SEC enforcement director claims crypto industry makes ‘creative attempts’ to avoid guidelines
Turner Wright5 hours agoSEC enforcement director claims crypto industry makes ‘creative attempts’ to avoid guidelinesGurbir Grewal claimed that the SEC’s standard for determining what a security is under the Howey
Bitcoin Price Forecast: What To Expect In The Final 24 Hours Before US Election
Este artículo también está disponible en español. As the US presidential election approaches, the Bitcoin price has found a stable support range between $68,000 and $69,0
Veteran Investor Jim Rogers Optimistic About Future of Crypto Money
Veteran Investor Jim Rogers Optimistic About Future of Crypto Money Renowned investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, says he ha
Coinbase fires back at senators asking SEC to halt crypto ETF approvals
Tom Mitchelhill5 hours agoCoinbase fires back at senators asking SEC to halt crypto ETF approvalsCoinbase chief legal officer Paul Grewal says there’s direct evidence that Ether’s futures and spot markets are just as
Coinbase Says It Brokered Microstrategy’s Influential $425 Million Bitcoin Buy
Coinbase Says It Brokered Microstrategy"s Influential $425 Million Bitcoin Buy U.S. crypto exchange Coinbase said Tuesday that it brokered Microstrategy’s