Two US SEC lawyers resigned after a Utah federal judge accused the agency of “gross abuse” of power in a case against crypto firm Debt Box.
The case accused Debt Box of defrauding investors of $49 million but was marred by false statements. The judge reprimanded the SEC’s actions, highlighting a significant misuse of authority by the SEC attorneys.
The SEC dismissed the lawsuit, but the overseeing judge has yet to respond. This incident underscores the strained relationship between the SEC and the crypto industry, with frequent clashes with entities like Coinbase.
It also questions the effectiveness of current regulatory tactics in managing complex crypto markets. The fallout could prompt significant changes in regulatory oversight within the crypto sector, stressing the need for fairness and transparency in legal proceedings.
