SEC Lawyers Resign After Judge Slams Lawsuit Against Crypto Project Debtbox

SEC Lawyers Resign After Judge Slams Lawsuit Against Crypto Project Debtbox

Two lawyers for the U.S. Securities and Exchange Commission (SEC) have resigned amidst controversy over the agency's enforcement actions. The resignations come after a Utah federal judge sharply criticized the SEC's handling of a lawsuit against cryptocurrency project Debtbox. The SEC accused Debtbox of selling unregistered securities in July 2023. However, Judge Robert Shelby dismissed the case in January, saying the SEC had failed to adequately investigate the claims. The judge also accused the SEC of "misleading" the court about the evidence in the case. The SEC considered firing the two lawyers, but they resigned before that could happen. The agency has not yet commented on the resignations. Shelby had previously criticized the SEC's use of the term "investment contract" in cases involving cryptocurrencies. He argued that the term is vague and gives the agency too much power to regulate the industry. The SEC is facing increasing scrutiny over its enforcement actions. Critics say the agency is overreaching and targeting cryptocurrency companies unfairly. Previously on 22nd April 2024, "Two lawyers for the U.S. Securities and Exchange Commission (SEC) have recently resigned following criticism from a Utah federal judge, Bloomberg reported. The resignations stem from the SEC's lawsuit against the cryptocurrency project Debtbox, which the agency accused of selling unregistered securities in July last year. U.S. District Judge Robert Shelby criticized the SEC's handling of the lawsuit, prompting the SEC to drop the case in January. The SEC reportedly considered firing the lawyers if they did not resign. Meanwhile, the Utah federal court has yet to formally respond to the SEC's request to dismiss the case."