SEC Requests Dismissal of DEBT Box Case Amid Sanctions Threat

The regulator admits to mistakes in presenting false evidence, while DEBT Box cites substantial damages from the court-granted restraining order.

The Securities and Exchange Commission (SEC) has requested to dismiss its case against crypto firm DEBT Box, following threats of court sanctions due to false and misleading evidence presented by the SEC.
Federal Judge Robert Shelby had ordered SEC attorneys to explain why they shouldn’t be sanctioned after presenting false evidence in their attempt to bring a temporary restraining order (TRO) against DEBT Box.
The SEC has admitted to making mistakes and has pledged to ensure such errors do not happen again. They have asked the judge to accept a motion to dismiss the action without prejudice, which would allow the SEC to refile charges in the future.
DEBT Box's attorneys had asked the court to sanction the SEC and drop the case entirely, citing substantial personal and financial damages resulting from the court-granted restraining order.
The SEC's request to dismiss the case does not meet DEBT Box's demands, as the dismissal without prejudice means the SEC could bring the charges again at a later date.