According to DEBT Box management, the SEC’s decision to dismiss the case is an attempt to secure special treatment in federal courts for the entities it regulates. The company asserts that the SEC is trying to evade possible sanctions for their illegal actions. DEBT Box is also concerned that the agency may reconsider future enforcement measures that could have repercussions for the company.
The SEC filed a motion to dismiss the case against DEBT Box on January 30, indicating their need to evaluate evidence, conduct an internal review, and analyze factors contributing to any inaccuracies in the charges. In August, the regulator accused DEBT Box of committing cryptocurrency fraud amounting to $50 million. The alleged fraud involved the sale of unregistered securities known as “software mining licenses.”
However, the SEC failed to provide sufficient evidence to support their accusations. Consequently, Judge Robert Shelby directed SEC lawyers to present a more precise argument, specifically regarding the defendant’s alleged attempts to sell crypto assets internationally in order to avoid regulation. DEBT Box has also requested that the scheduled hearing, originally slated for March 7, 2024, proceed as planned without any rescheduling, despite the SEC’s motion to dismiss.
“The SEC is seeking to end this lawsuit on its terms, while still retaining the option to re-file the lawsuit against DEBT Box and other defendants at any time. The company cannot leave this particular case to chance,” stated DEBT Box in their petition.
The SEC’s actions in this case have drawn criticism from Republican senators and the American Securities Association (ASA), who claim that the agency deliberately misled the federal court.