• A decide has dismissed the US SEC's lawsuit towards Debt Field and ordered the SEC to pay $1.8 million in charges.
• The ruling factors out the SEC’s unhealthy religion conduct in acquiring asset freezing orders.
• Debtbox calls the court docket's choice a serious victory towards regulatory overreach.

In a serious authorized victory for Digital Licensing, Inc., referred to as DebtBox, a federal decide has dismissed a civil lawsuit filed by the U.S. Securities and Trade Fee (SEC) and ordered the corporate to pay roughly $1.8 million in charges to the regulator.

The ruling, handed down on Might 28 by U.S. District Courtroom Decide Robert Shelby in Utah, marks a notable rebuke of the SEC's conduct within the case.

The recipient, the US SEC

The charges embody roughly $1 million in attorneys' charges and bills and one other $750,000 in recipient's charges and bills.

The order follows a court docket ruling in March that discovered the SEC had acted in “unhealthy religion” by looking for a short lived injunction to freeze Debtbox's property based mostly on inaccurate data. This misconduct led the court docket to threaten sanctions towards the SEC.

Decide Shelby’s ruling required the SEC to pay all attorneys’ charges and prices incurred on account of its inaccurate ex parte reduction award, aside from the $649 charge it deemed improper.

In an announcement launched by way of X, Debtbox hailed the ruling as a serious victory, saying, “This can be a enormous win for us. It means the SEC can not transfer ahead with the case because it stands.”

What was the Deadbox incident?

The SEC first filed its lawsuit in July 2023, accusing Debtbox of orchestrating an unlawful cryptocurrency fraud price $50 million.

However Debtbox countered with paperwork suggesting that the SEC made false statements and misrepresentations that led to the improper injunction.

The incident garnered important consideration throughout the cryptocurrency group and highlighted the problem of regulatory overreach.

In the meantime, the SEC continues to take authorized motion towards a number of different cryptocurrency firms, together with Binance, Kraken, Ripple and Coinbase.

In response, lawmakers have advocated for a clearer regulatory framework for digital property, with payments such because the twenty first Century Monetary Innovation and Expertise Act aiming to handle these considerations.