Debt Box Lawsuit Dismissed, SEC Ordered to Pay Legal Fees
CryptoNewsTerminal Staff28 May, 2024
Debt Box Lawsuit Dismissed, SEC Ordered to Pay Legal Fees
The US Securities and Exchange Commission (SEC) has been ordered to pay approximately $1.8 million in legal fees and costs after a US court dismissed a lawsuit against the cryptocurrency project Debt Box. The SEC had filed a lawsuit against Debt Box in July 2023, alleging that it sold unregistered securities. However, Utah District Judge Robert Shelby criticized the SEC for issues with the filing, including an abuse of process, prompting the SEC to indicate it would drop the lawsuit. Debt Box requested that the lawsuit itself be dismissed, rather than allowing the SEC to voluntarily dismiss it and refile it later. Judge Shelby agreed, dismissing the case with prejudice, meaning that the SEC cannot refile the lawsuit. This is a significant development in the ongoing legal battle between the SEC and the cryptocurrency industry. The SEC has been criticized for its aggressive approach to regulating cryptocurrency, and this ruling may give other cryptocurrency projects confidence to challenge the SEC's authority.
