Overview

• 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.