DEBT Box Fights SEC Bid to Exit Crypto Case
Cryptocurrency project DEBT Box is urging a federal judge to deny the Securities and Exchange Commission’s (SEC) request to dismiss fraud charges. DEBT Box asserted the motion aims to help the SEC cover up misconduct in initially obtaining a court asset freeze.
- SEC seeking ‘own terms’ to exit case after sanctions threat says DEBT Box.
- Platform alleges the regulator pursues penalties against others for the same behavior.
- Over 300K users were impacted, and tokens crashed 56% due to the asset freeze.
The SEC sued DEBT Box in August 2023 over allegedly unregistered securities offerings. The agency secured a temporary restraining order (TRO) freezing defendants’ assets based on what the judge later deemed “misleading” statements.
When the court threatened sanctions, the SEC asked for the case’s dismissal without prejudice rather than face repercussions. DEBT Box lawyers argue this shows the agency wants to be treated differently than those it regulates.
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Over 300,000 DEBT Box users affected by SEC’s actions
Defendants claim over 300,000 DEBT Box users across 130+ countries had accounts disrupted by the months-long TRO and platform shutdown. The native token price also plunged 56% amidst regulatory uncertainty.
DEBT Box operators further allege personal hardship from frozen assets. The defendants allege that it prevented loan and credit access and forced one defendant into bankruptcy.
“Still, the SEC wants a double standard,” lawyers wrote, seeking continued court skepticism about dismissal.
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The project team asserts that, for the same behavior in question, the SEC pursues heavy fines and penalties against corporate targets. DEBT Box argues the agency is unjustly seeking an easy exit to save itself after misleading the court.
The defendants also want the scheduled March 7th court date maintained, despite the SEC requesting its cancellation and dismissal.
