U.S. court rules SEC misrepresented information in the DEBT Box case

A U.S. federal court ruled that SEC lawyers misled it in an attempt to freeze the assets of the mining company DEBT Box.

According to the judge, representatives of the agency claimed that the firm had attempted to transfer investors’ funds abroad. However, during the proceedings, DEBT Box showed that it had not moved assets outside the United States and had not closed bank accounts prior to the hearing.

“The misrepresentation of information by SEC lawyers undermined the integrity of the proceedings in this case. Moreover, it caused irreparable harm to DEBT Box,” the judge said.

The Commission’s lawyers were asked to respond to the court’s findings within two weeks; otherwise the agency could face a fine.

Earlier in July, the SEC accused the mining company Digital Licensing, also known as DEBT Box, in a fraudulent attempt to raise $50 million in cash, as well as undisclosed amounts in Bitcoin and Ethereum.

The agency, on an emergency basis, froze the firm’s assets and took action against four of its executives and 13 other defendants.