judge threatens to sanction SEC Lawyers For Misrepresentation

A federal judge warned the SEC’s lawyers of sanctions after attorneys used “false” arguments to get a court to place a temporary restraining order on the cryptocurrency company Debt Box. U.S. District Judge Robert Shelby of the U.S. District Court in Utah issued an order stating that the attorneys representing the SEC may face sanctions for their allegedly “misleading” claims regarding the cryptocurrency project Debt Box’s purported attempts to transfer its assets and investors’ money abroad, which resulted in the project’s bank accounts being frozen by the court. Judge Shelby issued an order stating that the SEC’s “misrepresentations… undermined the integrity of the case’s proceedings” and that Debt Box had suffered “irreparable harm.”

Debt Box was originally hit with a temporary restraining order by a federal judge in August, which limited its access to its assets. Nevertheless, Debt Box’s attorneys said that he later revoked the order after the company proved it hadn’t closed its bank accounts or transferred money outside of the country two days prior to a hearing over the SEC’s request to freeze its assets.