Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
SEC Files to Dismiss Lawsuit Against Debt Box, Attempts to Avoid Sanctions?

SEC Files to Dismiss Lawsuit Against Debt Box, Attempts to Avoid Sanctions?

CoineditionCoinedition2024/01/31 23:04
By:Rawan Alamin
  • The SEC filed a brief to dismiss the lawsuit against Debt Box.
  • Reportedly, the SEC’s dismissal is to evade facing possible monetary sanctions.
  • The filing asked for a dismissal without prejudice, leaving the door open for future lawsuits.

The U.S. Securities and Exchange Commission (SEC) filed a brief in the Debt Box case, revealing that the regulator intends to dismiss the lawsuit against the crypto company. 

In a January 30 filing to the U.S. District Court of Utah in the SEC’s case against Debt Box, the SEC determined that dismissing the lawsuit is the “best way to proceed.” The court filing said, “The Commission has determined that the best way to proceed is to dismiss this action without prejudice.” 

Fox Business Journalist Eleanor Terrett highlighted that the reason behind the SEC’s dismissal is to avoid facing possible sanctions from the court for misleading statements. The SEC believes that while their attorneys should have been “more forthcoming” with the court, the situation doesn’t require sanctions as an appropriate solution to address those issues.

Recently, the Debt Box defendants filed a reply brief asking the court to punish the regulator for deliberate misdeeds. Nevertheless, the SEC requested the court, if a sanction is necessary, not impose a penalty beyond dismissal without prejudice. 

Terret added that by asking the case to be dismissed without prejudice, the SEC is leaving a “door open for the agency to come back and file a new suit against Debt Box in the future.” Terret mentioned that a comment from the judge is expected and anticipated. 

Furthermore, Terret thought that a dismissal acceptance by the judge doesn’t equate to the agency escaping “scot-free.” The journalist said that the judge could choose to impose monetary sanctions on the agency for misleading the court. 

The Debt Box defendants called for monetary sanctions against the regulatory body, which the SEC disputed, claiming that the defendants are requesting monetary sanctions under Rule 11. The SEC argued, “But Rule 11 prohibits a court acting on its own initiative from ordering payment of a monetary penalty to an opposing party.” 

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

The Daily: Dogecoin investors drop class-action lawsuit against Elon Musk, Michael Saylor plans $100K bitcoin party and more

Dogecoin investors have dropped their class-action lawsuit against Elon Musk, which accused him of manipulating the price of DOGE during its 2021 surge from less than $0.10 to around $0.70.JPMorgan analysts anticipate positive regulatory changes for crypto under President-elect Donald Trump, with clearer frameworks likely to benefit the industry.President-elect Donald Trump nominated bitcoin advocate Robert F. Kennedy Jr. for U.S. Secretary of Health and Human Services on Thursday.The following article is

The Block2024/11/15 20:23

Matrixport Included Developments That Will Affect Bitcoin in December in Its Weekly Report! Here Are the Details

Matrixport's latest weekly report highlights a number of positive factors that have underpinned Bitcoin's recent strong performance.

Bitcoinsistemi2024/11/15 20:00

Trump's Inflow Wave Has Ended! Spot Bitcoin and Ethereum ETFs Experience First Outflows Since Election!

It ended a wave of inflows and outflows in spot Bitcoin and Ethereum ETFs that has been ongoing since Donald Trump was elected president on November 5.

Bitcoinsistemi2024/11/15 19:55