Salt Lake City, Utah – December 22, 2023 – The Securities and Exchange Commission (SEC) admitted to misrepresenting facts in a crypto case and apologized to a Federal Judge recently when it sought a restraining order and asset freeze against Digital Licensing Inc. (DEBT Box) in July. 1
The SEC then alleged a $50 million investor fraud. However, internal errors and insufficient evidence led to inaccuracies in the agency’s arguments.
The agency faces potential sanctions stemming from the missteps.
“The Commission deeply regrets these orders,” SEC Enforcement Chief Gurbir Grewal wrote in a court filing. 2
He also pledged mandatory training for the staff involved and acknowledged falling short of regulatory standards.
Judge Robert Shelby had ordered the SEC to explain its actions, expressing concern about “materially false and misleading representations.”
The case fueled criticism of the agency’s aggressive crypto-enforcement tactics.
The SEC admitted staff “fell short” but denied intentional misconduct.
While Judge Shelby is considering sanctions, the SEC proposed internal corrective measures as sufficient.
- Fortune: https://fortune.com/crypto/2023/12/22/sec-error-debt-box-utah-gary-gensler-crypto/[↩]
- Biz: https://biz.crast.net/sec-expresses-deep-regret-over-errors-in-crypto-case-asks-judge-to-waive-sanctions-after-misleading-statements/[↩]
