DEBT Box Urges Court to Reject SEC's Dismissal Request Amid Regulatory Lawsuit
Summary:
Crypto venture DEBT Box has asked a Utah federal court to reject the US Securities and Exchange Commission (SEC)'s bid to dismiss a disputed regulatory lawsuit against it. The firm accuses the SEC of attempting to evade potential penalties and allegations of professional misconduct. The SEC had previously admitted to making inaccurate courtroom statements. Despite the SEC's cancellation request, Debt Box is insisting on proceeding with a scheduled hearing on March 7. This legal battle started when the SEC accused Debt Box and its promoters of defrauding investors out of at least $49 million by selling unregistered securities under the guise of software licenses.
On February 14, crypto initiative DEBT Box appealed to a Utah federal court to override the United States Securities and Exchange Commission (SEC)'s request to dump a disputed regulation lawsuit against the company. In their plea, Debt Box implied that the move by the SEC is a tactical ploy to evade potential penalties and the possible final termination of the case due to supposed unprofessional conduct.
In January, the SEC filed for dismissal, stating its plan to reevaluate the proof in the lawsuit and comprehend the factors that could have caused its legal advocates to initially deliver untrue statements to the court. On the contrary, the advocates from Debt Box argued that the SEC’s willingness to throw out the case informally is a tactical strategy to dodge penalties and maybe kick-start a modified repeat of the regulation action, free from allegations of misconduct.
Digital Licensing Inc., operating as Debt Box, expressed, “The SEC aspires to quit this lawsuit on its terms while preserving the option to launch another regulation action against the Debt Box defendants and other defendants at an unspecified time in the future, and possibly in a different venue — like nothing transpired in this lawsuit, but something did transpire in this lawsuit.”
The defendants further argued that the SEC’s dismissal request is an attempt to win special privileges in federal courts compared to bodies it oversees. They highlighted the SEC’s discontent with commitments to restructure groups or offer intensified ethical training when businesses are blamed for duping investors.
Debt Box's reply comes after the SEC admitted in late December to making false courtroom statements. Utah U.S. District Court Judge Robert Shelby critiqued the SEC’s attorneys and ordered the institution to clarify any “deceptive or erroneous” statements, asserting that the corporation aimed to transfer financial resources abroad to dodge regulatory control.
However, Judge Robert dismissed these actions, arguing that the SEC falsified the circumstances. The regulator then adjusted its legal representation in response to a court directive, pledged to in-house training, and requested temporary dismissal for internal reevaluation.
Debt Box additionally insisted on proceeding with the slated court hearing on March 7 despite the SEC's cancellation request.
In the preliminary phases of the lawsuit against Debt Box and its promoters, the SEC instituted urgent actions, charging them with duping investors out of a minimum of $49 million by trading unregistered securities in the guise of licenses for software supposedly capable of mining digital assets linked to real-world sectors.
Published At
2/15/2024 1:31:05 PM
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