Bad news came from the court to the SEC, which stated that most crypto currencies are securities and took a harsh stance against the crypto industry.
Continuing its sanctions against cryptocurrencies, the SEC filed a lawsuit against Debt Box in July 2023.
The US judge presiding over the Debt Box case rejected the SEC's lawsuit against Debt Box.
Utah District Court Judge Robert Shelby also ordered the SEC to pay approximately $1.8 million in attorneys' fees in its lawsuit against Digital Licensing Inc., doing business as Debt Box.
In his decision, the judge pointed out that the SEC showed 'malicious conduct' in the interim measure to freeze Debt Box's assets.
In its post on its X account, Debt Box described Judge Robert Shelby's decision as a victory and said:
“We have great news to share with our DEBT Box community today.
The U.S. District Court for the District of Utah formally dismissed the SEC's lawsuit against us without prejudice.
This means the case is closed, the SEC cannot continue the case in its current form, and any future action by the SEC must go through Judge Shelby.
The court also imposed sanctions on the SEC, ordering DEBT Box to cover the attorneys' fees and expenses it incurred during this legal battle.
“This is an important step towards fairness and transparency.”
The SEC filed a lawsuit against Debt Box in July 2023, accusing the company of running an illegal cryptocurrency scheme worth $50 million.
*This is not investment advice.