Two SEC Lawyers Resign Amidst Legal Fallout Over Misconduct in Crypto Case

Federal Judge censures SEC for 'gross abuse of power' in handling of the Debt Box crypto fraud case, leading to significant legal and personnel repercussions.

• Two SEC attorneys, Michael Welsh and Joseph Watkins, resigned after a federal judge rebuked their handling of the Debt Box case, citing 'gross abuse of power'.
• Judge Robert Shelby of Utah criticized the SEC for false statements and a lack of evidence in the case against the crypto platform, leading to the reversal of an asset freeze.
• The SEC moved to dismiss the case against Debt Box without prejudice, though the judge has yet to rule on this motion.
• Legal and financial repercussions continue as Debt Box seeks over $1.5 million in fees and costs incurred due to the SEC's missteps.
• Senate Republicans have raised concerns about the SEC's conduct, suggesting other enforcement cases might also need scrutiny.

3 Articles

The Seattle Times CoinDesk The Block