On Thursday, a federal judge, Robert Shelby, cautioned Securities and Exchange Commission (SEC) lawyers, suggesting he might penalize them for allegedly persuading the court to freeze a cryptocurrency company’s assets under “false and misleading” acting, according to a court filing.
The court order revealed that Judge Shelby warned the SEC attorneys of presenting misleading arguments under false pretenses in the Debt Box case. Sec allegedly claimed that the crypto project was trying to move assets and investor funds abroad.
These alleged misrepresentations not only harmed the integrity of the legal proceedings but also caused significant and irreparable damage to Debt Box, leading to the freezing of its bank accounts.
In August, Judge Shelby, initially imposed a temporary restraining order on Debt Box, limiting its access to assets. However, the judge lifted the order later on when Debt Box showed evidence that it had not transferred funds abroad or closed its bank accounts just before a hearing regarding the SEC’s request to freeze its funds, as stated by Debt Box’s legal representatives in a filing.
On Thursday, Judge Shelby requested the SEC’s lawyers address his concerns about their claims that Debt Box tried to transfer its funds abroad. The SEC has been given a two-week period to respond to this inquiry, as stated in the order.
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