A US judge has ordered the Securities and Exchange Commission to pay $1.8 million in fees to cover legal costs in the Debt Box lawsuit. The judge ruled that the SEC abused its authority in the case and will now have to pay fines on behalf of the crypto platform.
According to Utah Judge Robert Shelby, the court order includes nearly $747,000 for a court-appointed receiver. Shelby previously chastised the regulator for “gross abuse of power” in the case, including false statements by the SEC's lawyers. The SEC will have to pay nearly $600,000 in fees and costs to Debt Box as part of the ruling.
The sanctions against the SEC require the regulator to “cover all attorneys' fees and costs arising from the carelessly entered documents.” ex parte relief.” Judge Shelby ruled that all costs requested by the defendants in the case were “appropriate,” with the exception of a single award of $649.
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“This is an important victory for us” said Debt Box in a post on X (formerly Twitter). “It means the SEC cannot continue with the case as it is now.”
The SEC filed a lawsuit against Debt Box in July 2023. The regulator accused DEBT Box and its executives of defrauding investors of at least $49 million. While Judge Shelby immediately sided with the SEC and forced the company to freeze its assets, he ultimately found that the regulator “made materially false and misleading statements.” That's why he changed his mind and pushed for sanctions.
Multiple SEC attorneys resigned after Judge Shelby sanctioned the agency. However, now they are involved with the parties that have to pay back Debbox.