The U.S. Securities and Exchange Commission (SEC) has approved Digital Licensing Inc., also known as DEBT Box. He expressed his deep regret for the mistakes made in the case filed against a cryptocurrency company called.
The agency asked the judge to refrain from sanctions after misleading statements led to a restraining order against the firm and the freezing of its assets.
SEC Enforcement Division chief Gurbir Grewal said:
“I fully appreciate the extraordinary responsibility placed on the SEC in enforcing the federal securities laws. “I understand that our department fell short of these standards in this case, and I apologize for this shortcoming.”
The SEC filed a lawsuit against DEBT Box in July, claiming that the project defrauded investors of approximately $50 million. As part of the lawsuit, the SEC had sought a temporary restraining order and asset seizure against the firm and its executives. However, the defendants disputed the SEC's allegations, prompting a strongly worded order asking the judge to explain the SEC's actions.
In a 27-page response, SEC lawyers acknowledged the agency's shortcomings, saying, “The Commission cannot allow its ongoing effort to stop fraud to thwart its duty to be truthful and candid.”
While the judge talked about possible sanctions against the institution, the institution's lawyers argued that mandatory training would be sufficient because its staff did not exhibit “malicious behavior.” The SEC assigned a new team of lawyers from the agency's Office of General Counsel to evaluate his missteps and concluded that his staff “did not intend to mislead the court.”
*This is not investment advice.