U.S. District Judge Robert Shelby issued a stern warning to Securities and Exchange Commission (SEC) attorneys regarding possible sanctions for “misleading” court proceedings in a lawsuit against the cryptocurrency firm Debt Box, according to court filings.
The SEC secured a temporary restraining order against Debt Box via statements that were later proven to be false.
Judge Shelby, presiding over the case in the Utah District Court, expressed concerns about the SEC’s representation of Debt Box’s activities and ordered the watchdog to provide an explanation to the court in the coming days.
SEC vs. Debt Box
The SEC had accused the firm of illicitly transferring assets and investors’ funds overseas and used that statement to secure an initial freeze of Debt Box’s bank accounts as part of its case against the firm.
However, these claims were subsequently found to be exaggerated, prompting the judge to consider sanctions against…
