DEBT Box Stands Up to SEC’s Dismissal Attempt in Crypto Lawsuit

DEBT Box is urging a federal judge to reject the Securities and Exchange Commission’s (SEC) recent bid to drop its lawsuit against the cryptocurrency initiative.

In July 2023, the Securities and Exchange Commission (SEC) initiated a lawsuit against Debt Box, accusing the company of orchestrating an illicit cryptocurrency scheme valued at $50 million. Based on the SEC’s allegations, the court sanctioned a temporary restraining order to immobilize Debt Box’s assets. Subsequently, it emerged that numerous claims made by the SEC were unfounded, prompting the court to consider imposing sanctions and compelling the commission to request the dismissal of the case.

In December, facing the threat of sanctions after purported infractions, the SEC petitioned the court to dismiss the case without prejudice. This would allow the agency to potentially refile charges against the defendants in the future.

“The SEC wants to exit this action under its own terms while retaining the option to re-file another enforcement action against the DEBT Box Defendants and other defendants at some undetermined time in the future, and perhaps in a different forum — as if nothing happened in this case”

stated the attorneys for DEBT Box in their counter-motion.

The defense team for Debt Box has accused the Securities and Exchange Commission (SEC) of pursuing a double standard in federal court, distinct from the treatment of those it regulates. In a filing on Wednesday, the defense argued, “Still, the SEC wants a double standard — it wants to be treated differently before federal courts than those that it regulates or attempts to regulate”

The defendants have also requested that the judge maintain the scheduled March 7 hearing, which the SEC had previously sought to have canceled.