Federal Judge Sanctions SEC Over Misconduct in Crypto Company Case

A U.S. federal judge has imposed sanctions on the SEC for its handling of a lawsuit against the crypto company DEBT Box, citing 'gross abuse of power' and bad faith conduct.

A federal judge criticized the SEC for 'gross abuse of power' in its dispute with DEBT Box, a blockchain firm, and sanctioned the regulator by ordering it to pay legal costs.
The SEC accused DEBT Box of defrauding investors of nearly $50 million, but the judge found the regulator's actions to be in bad faith and based on misleading information.
The judge's ruling highlights concerns over the SEC's aggressive approach towards crypto firms and adds to the scrutiny of Chair Gary Gensler's enforcement campaign.
DEBT Box was accused of offering unregistered securities in the form of 'node software licenses' for cryptocurrency mining, which the SEC alleged were never mined.
The case has become a focal point for criticism of the SEC's enforcement practices, with industry leaders and politicians expressing concern over the regulatory environment for blockchain companies.