The U.S. District Court for the District of Utah has recently dismissed the Securities and Exchange Commission’s (SEC) case against Digital Licensing, also known as Debt Box. Additionally, the court has mandated the SEC to pay around $1.8 million in attorney and receivership fees. Debt Box made an official statement on May 28 confirming the dismissal, stating that any future action by the SEC would require approval from Judge Shelby.
Judge Shelby’s decision to dismiss the case without prejudice was accompanied by an order for the SEC to cover approximately $1.8 million in attorney fees and costs, along with $750,000 in receiver fees and costs. This ruling was a result of a previous ruling in March where the court found the SEC guilty of “bad faith conduct” in connection to a temporary restraining order and asset freeze placed on Debt Box.
The SEC had initiated legal proceedings against Debt Box in July 2023, alleging involvement in a $50 million illegal cryptocurrency scheme. However, Debt Box contested these claims, citing inaccuracies in the information presented by the SEC. This led to the threat of sanctions against the agency, ultimately requiring them to cover all legal fees and costs arising from the improper restraining order.
The case sparked debates within the cryptocurrency community, with many seeing it as an instance of regulatory overreach. The SEC has been engaged in legal disputes with various crypto firms, including Binance, Kraken, Ripple, and Coinbase. As a result of these controversies, lawmakers in Congress have been advocating for increased regulatory clarity regarding digital assets and pushing for legislative actions.
Debt Box’s team welcomed the court’s decision as a “monumental victory” for their company, the industry as a whole, and their community. They stressed the significance of integrity and fairness in regulatory procedures, underlining the importance of holding regulatory bodies accountable for their actions.
