The SEC was defeated in court

There’s been an interesting incident in the United States in Utah. Perhaps for the first time, the US Securities Commission received a very strong judicial warning. So far the courts have been loyal to almost any demands of the commission. 

The exceptions were the Bitcoin-ETF claim process and the Ripple lawsuit. There were still losing court decisions, but they seemed to be unfortunate misunderstandings and most of the cases went unnoticed. Now, however, what happened before seemed unthinkable.

There was a lawsuit, and the SEC was accusing DEBT Box of defrauding investors for $49M. Together with the lawsuit, the commission requested the court to freeze funds in the accounts of DEBT Box. 

The judge accepted the suit and complied with the wishes of the SEC: he froze the company’s assets and introduced arbitration. Of course, this has critically affected the business, DEBT Box suffered losses.

For the SEC everything had been spoiled by the staff speaking at the court. For example, it was stated that DEBT Box withdraws funds to foreign accounts. DEBT Box, in turn, demanded evidence, the judge supported. The representative of the SEC had to admit that there is no exact evidence, and the conclusion he made based on the video on YouTube. Some inaccurate answers made the judge suspicious. It is difficult to say that it was incompetence or the desire by any means to achieve a positive result.

The judge did not like this behavior at all, and he accused the SEC of gross abuse of the power, unfreezed DEBT Box’s assets, denied the SEC’s claim and demanded that the commission pay the company’s legal costs.

Can this case be considered as legitimate?

Unlikely. I suspect that this is just an accident, the initiative of an individual employee. This clearly demonstrates the lack of competent staff. 

History, of course, looks ugly. The incompetence of the authorities resulted in real losses. Note that in general the activity of the SEC leads to business losses. And it is sad.

#SECDefeat #JudicialWarning #DEBTBoxVictory #SECIncompetence #LegalCosts