Bloomberg News, citing anonymous sources, reported that two U.S. Securities and Exchange Commission attorneys resigned after a Utah judge recently reprimanded the agency for “serious abuse of power.”
The SEC also planned to fire the two lawyers if they did not resign, the report said. A federal district court judge in Utah criticized the SEC’s defense team, saying their case was “marred by misrepresentations and misrepresentations.”
Last July, the SEC accused cryptocurrency platform Debt Box of “allegedly defrauding investors of at least $49 million,” according to the report. Last month, a judge ruled that the SEC erred in filing the lawsuit against the company.
Cryptocurrency organizations and the SEC have historically had a combative relationship with government agencies. Some of the country’s top cryptocurrency companies, including Coinbase, have found themselves at odds with financial regulators at times.
According to reports, the SEC has already dismissed the case against Debt Box, but the judge has not yet responded.
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.