Judge Robert J. Shelby ruled that the SEC must cover legal fees and costs exceeding $17.5M due to its misleading behavior.
In the Debt Box case, Judge Robert J. Shelby of the United States District Court recently ruled that the Securities and Exchange Commission should cover legal fees and costs exceeding $17.5 million.
This verdict is a result of the actions taken by the regulator in a dispute involving the cryptocurrency company Debt Box.
US SEC to pay $ 1. 75 million in debt box case
The judge made the determination that the SEC’s behavior was misleading and that it behaved in bad faith. Judge Shelby should hold the regulator accountable for approximately $750,000 in receivership expenses and one million dollars in attorney fees.
The decision also indicates the judge’s scorn for the actions taken by the regulator in August of last year to seek a temporary restraining order (TRO) and an asset freeze against Debt Box on the basis of misrepresenInitially, the regulator had accused Debt Box of committing a $60 million scam and alleged that the company had shifted the money to other countries in order to conceal it.
The regulator asserted a worldwide transfer of the funds, but later findings revealed a transfer within the United States.
In addition to criticizing SEC attorney Michael Welsh’s behavior, Judge Shelby also condemned the regulators approach in this particular instance. He stated that the Securities and Exchange Commission (SEC) not only made false representations before the court but also never corrected them.
Instead, they chose to alter the language of their comments in order to continue to sustain the narrative that they had established.
In his argument, Shelby stated that this was a “gross abuse of the power entrusted to it by Congress” and that it “substantially undermined the integrity of these proceedings.”