SEC Withdraws Lawsuit Against DEBT Box, Ordered to Pay $1.8 Million in Costs

A US federal court ordered the SEC to pay approximately $1.8 million in costs related to the case against the mining company Digital Licensing, also known as DEBT Box.

This amount includes fees for defense attorneys and other litigation expenses. 

“With this order, the court ensures that the final amount requested by both parties is reasonable,” the documents state.

According to another notice, the case was dismissed at the SEC’s request “without prejudice.” This term indicates that the process cannot be resumed with its original claims.

“The Commission asserts that dismissing the case is appropriate as it protects investors and public interests and does not cause legal harm to the defendants,” the ruling states. 

In July 2023, the SEC accused DEBT Box of fraudulently raising $50 million in cash, as well as undisclosed amounts in Bitcoin and Ethereum. The regulator urgently froze the company’s assets and took action against four of its executives and 13 other defendants.

In December, the court concluded that the agency’s lawyers misled it in an attempt to block DEBT Box’s funds. During the proceedings, the mining firm was able to refute the SEC’s claims of transferring investors’ money outside the US.

Company representatives shared the “good news” about the dismissal of the lawsuit on X. 

? We have some fantastic news to share with our D.E.B.T. Box community today!

The U.S. District Court for the District of Utah has officially dismissed the SEC’s case against us without prejudice. This means the case is closed, and any future action by the SEC would have to go… pic.twitter.com/aGiNVxMYbz

— D.E.B.T. (@TheDebtBox) May 28, 2024

“The case is closed, and any future actions by the Commission must be considered by a district judge. […] The sanctions imposed on the SEC require it to cover attorney fees and expenses incurred by DEBT Box during this litigation. This is a significant step towards justice and transparency [for the entire industry],” the mining firm emphasized.

Previously, the court sided with the Commission in the case against YouTube blogger Ian Balina. He was found guilty of violating US securities laws in the promotion and sale of SPRK tokens. 

Earlier, in response to the April Wells notice from the SEC, Uniswap Labs called the agency’s legal argument weak and expressed readiness for a legal battle. Representatives of the decentralized exchange urged the agency to withdraw the lawsuit.