- SEC accused of making false representations in freezing crypto firm’s assets.
- Legal setbacks multiply, including Ripple’s partial victory in XRP lawsuit.
- Ongoing battles with Binance and Coinbase over alleged unregistered securities sales.
The US Securities and Exchange Commission (SEC) encountered yet another hurdle on Friday, December 1, 2023, as a federal judge admonished the agency’s legal representatives in a case involving a cryptocurrency firm. The judge voiced strong criticism of the SEC’s handling of the financial matters of the crypto entity, stating that the Commission had made “materially false” representations to justify freezing the firm’s assets.
Allegations of False Representations
As per a detailed report by Fortune, the federal judge rebuked the attorneys representing the SEC for their management of assets totaling millions of dollars belonging to Debt Box, a crypto firm. The judge from Utah expressed concern that the SEC had provided the court with “materially false and misleading representations” to justify the freezing of millions of dollars in assets. The court demanded that the SEC present reasons why it should not face sanctions for allegedly deceiving the court.
The judge highlighted that the SEC‘s deceptive actions resulted in irreparable harm to the company, leading to the freezing of assets valued at millions of dollars. The alleged misleading information was purportedly presented by the SEC to obtain approval for a temporary restraining order against the crypto company.
Accumulating Legal Setbacks
This incident adds to a series of legal setbacks for the Securities and Exchange Commission in recent times. One of the most significant blows came in the form of a partial victory for Ripple in the XRP lawsuit summary judgment. In this ruling, Judge Analisa Torres concluded that the programmatic sale of tokens to retail customers did not meet the criteria for securities.
In another legal battle, the SEC finds itself entangled in disputes with major cryptocurrency exchanges, including Binance and Coinbase ($COIN). These cases revolve around allegations of the unregistered sale of securities on these platforms, marking yet another legal front where the SEC faces challenges in regulating the rapidly evolving cryptocurrency landscape.
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