In August 2023, the SEC accused Debt Box of perpetrating a $50 million crypto fraud. But was the firm operating in 'bad faith?'
In a significant development, a United States district court has levied sanctions against the Securities and Exchange Commission for engaging in “bad faith” conduct during a lawsuit against Debt Box.
“The “critical evidence” the SEC offered to have obtained ‘lacked any basis,’ which was nonetheless advanced in “deliberately false and misleading ways.”“The bad faith in inextricable from the abusive conduct and a sanction of attorneys’ fees and costs for all expenses resulting from that conduct is appropriate.”In August 2023, the SEC accused Debt Box of perpetrating a $50 million crypto fraud, alleging that it masqueraded as a mining license provider.
However, upon review, Judge Shelby found the SEC misrepresented facts, including the location of the $720,000 transfer, which was found to have occurred within the U.S.“The operation of the American judicial system rests on the fundamental proposition that every party who comes before the court is bound by and adheres to the same set of rules.”