SEC lawyers resign after judge blasts agency for 'abuse' of power in crypto fraud trial: Bloomberg

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The Block2024/04/22 20:10

By:The Block

Quick Take After a Utah judge criticized the Securities and Exchange Commission for a “gross abuse” of power, two of the agency’s lawyers resigned, according to Bloomberg, which cited anonymous sources. The two former SEC lawyers in question were heading a case against Digital Licensing Inc., or the crypto platform known as Debt Box, and their case was “marred by false statements and misrepresentations,” according to the Utah judge.

SEC lawyers resign after judge blasts agency for 'abuse' of power in crypto fraud trial: Bloomberg image 0

Two U.S. Securities and Exchange Commission lawyers recently resigned after a Utah judge reprimanded the agency for a “gross abuse” of power," according to Bloomberg, which cited anonymous sources.

The SEC was planning to fire the two lawyers if they didn't step down, the report also said. A federal district court judge in Utah had criticized the SEC attorneys, saying their case was "marred by false statements and misrepresentations."

According to the report, back in July, the SEC accused the crypto platform Debt Box "of defrauding investors of at least $49 million." Last month, the judge officially called out the SEC for its alleged missteps in putting together its case against the company.

Crypto organizations and the SEC have historically had a combative relationship with the government agency. Some of the top crypto companies in the U.S., including Coinbase, have at times locked horns with the financial regulator.

The SEC has already moved to dismiss the case against Debt Box, but the judge has yet to respond, according to the report.

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.

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