- The SEC has responded to the court’s request to address inaccurate allegations in the lawsuit against DEBT Box.
- The regulatory agency acknowledged that some of the statements made were opinions of its representatives.
- The Commission plans to educate its employees on providing accurate information. Nonetheless, it remains committed to freezing the company’s assets.
The US Securities and Exchange Commission (SEC) has admitted to making false statements in the case against DEBT Box, a cryptocurrency company. Previously, the regulator sought to freeze the company’s assets under the belief that it was attempting to move funds overseas.
In its court filing, the Commission stated that certain statements made by its representatives were merely their own interpretations. The SEC also expressed its intention to educate its employees on better communication practices.
“Abbott, the assistant prosecutor, did not rectify the error due to her inexperience and desire not to interfere with the trial,” the documents reveal.
Despite this clarification, the SEC maintains its position on freezing DEBT Box’s assets.
It is worth recalling that in July 2023, the SEC accused DEBT Box of distributing securities without the necessary license. In August, the regulator obtained a temporary restraining order to freeze the company’s assets, citing alleged account closures by the platform.
However, this decision was overturned after the company presented evidence to the contrary. DEBT Box demonstrated that it did not close accounts or transfer funds abroad.
In response to the SEC’s misleading statements, the court demanded an explanation and threatened potential sanctions against the Commission.