U.S Senators Censure SEC Chair Over Handling of DEBT Box Case

• The SEC expressed its intention to dismiss the lawsuit against DEBT Box.
• Judge Robert Shelby of the Utah U.S. District Court chastised the agency’s attorneys.

A number of Republican senators hold Gary Gensler, chair of the Securities and Exchange Commission, in contempt for making inaccurate claims in the agency’s case against the cryptocurrency firm DEBT Box.

In a letter sent to Gensler on Wednesday, Senators Cynthia Lummis (Wyoming), Bill Hagerty (Tennessee), Katie Boyd Britt (Alabama), Thom Tillis (North Carolina), and JD Vance (Ohio) stated that the SEC’s responsibility to safeguard investors and ensure fair markets was “compromised” by its treatment of the case.

The letter mentioned:

“We are greatly concerned by the Commission’s conduct in this case. It is unconscionable that any federal agency—especially one regularly involved in highly consequential legal procedures and one that, under your leadership, has often pursued its regulatory mission through enforcement actions rather than rulemakings—could operate in such an unethical and unprofessional manner.”

False or Misleading Assertions

First filed in July, the SEC’s lawsuit against Digital Licensing Inc., d/b/a DEBT Box, sought to recover at least $49 million from thousands of victims who had been duped into purchasing so-called “node licenses” that promised to generate income from the mining of 11 tokens—that were never actually mined.

Moreover, near the end of December, the agency admitted that it had been misleading in court. And that it had “fell short” of the standards for candor and accuracy. Also, after the SEC said that the corporation was attempting to transfer assets abroad to evade its jurisdiction, Judge Robert Shelby of the Utah U.S. District Court chastised the agency’s attorneys and directed them to clarify “false or misleading” assertions.

Last Monday, the SEC expressed its intention to dismiss the lawsuit against DEBT Box without prejudice. However, it means that they may still re-file their case.

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