DEBT Box urged the judge to dismiss the case as the SEC found the case ‘badly flawed’
Lending Box and other defendants in the Securities and Exchange Commission lawsuit want the case dismissed after the agency found that it lied to obtain the temporary restraining order.
“The SEC got this case wrong. Attorneys for Digital License Inc., which operates as DEBT Box, spoke in a Dec. 4 ruling by Utah federal judge Robert Shelby. “The SEC must not allow a false narrative to continue to be spun to avoid layoffs.”
The SEC on August 3 won a temporary restraining order to freeze the debt fund's assets.
The agency accused the firm of running a $50 million fraudulent crypto scheme. Debtbox sold software mining licenses along with real-world assets, which the SEC said were unregistered securities.The defendants denied this claim.
“Such allegations are not only false, they fail to meet basic appellate requirements,” he wrote in a recent motion.
A Utah federal court reversed the asset freeze on Nov. 30 and the SEC closed DEBT Box's bank accounts and provided false information in an attempt to relocate to the United Arab Emirates and evade SEC jurisdiction.
The court found that the company did not close its bank accounts and that the SEC accused the transfer of $720,000 sent abroad.
SEC reveals legal status regarding crypto assets “in deadly plea” DEBT Box reports.
The SEC's wrongdoing allowed Judge Shelby to issue a “show order”, which forced the regulator to provide reasons why its actions would not lead to punishment.
The SEC's ‘shocking' behavior deserves punishment, say Ripple executives
David Schwartz, Ripple's chief technology officer, said the SEC's behavior was “shocking.”
In a December 5th X (Twitter) post, “The SEC went to a judge to paralyze many businesses and get the facts wrong before anyone on the other side could defend themselves.
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John Deaton, Ripple's lawyer, hopes the regulator will be forced to pay DEBT Box for damages.
The debt box case is a great example of why Judge Netburn is forced to announce to the world that the lawyers at the SEC have “no integrity to the law” and will do or say anything to advance their own agenda.
SEC successfully obtains temporary stay in debt fund… https://t.co/Qr2jrOyb1J
— John E. Deaton (@JohnEDeaton1) December 5, 2023
DebtBox's four principals — Jason Anderson, his brother Jacob Anderson, Shad Brannon and Royden Nelson — and 13 other individuals are included in the SEC action.
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