The U.S. District Court for the District of Utah has made a recent ruling that requires the U.S. Securities and Exchange Commission (SEC) to pay approximately $1.8 million in attorneys’ fees and court costs related to the case against Digital Licensing, also known as Debt Box. This order, signed by Judge Robert Shelby, includes nearly $1 million in legal fees and $750 in court costs, which is a significant development in the litigation.
Alongside this ruling, the case against Debt Box has been dismissed without prejudice, marking a victory for the company. In March, it was determined that the SEC had acted in bad faith by attempting to freeze Debt Box’s assets through a temporary restraining order. Debt Box challenged these allegations with supporting documents, leading to the court’s severe response. As a result, the SEC is responsible for covering all costs incurred due to its reckless conduct, except for a separate fee of $649.
The situation originated from the SEC’s initial allegations in July 2023, where Debt Box was accused of involvement in an illegal cryptocurrency scheme worth $50 million. Many viewed Debt Box’s strong defense, backed by evidence against the SEC’s claims, as a clear example of regulatory overreach.
This case is part of a larger context of SEC lawsuits against prominent cryptocurrency companies such as Binance, Kraken, Ripple, and Coinbase. Simultaneously, there is increasing pressure from lawmakers in the US Congress for the SEC to provide greater regulatory clarity on digital assets, including initiatives like the Financial Technology and Innovation for the 21st Century Act.
Debt Box expressed their satisfaction with the outcome, stating, “This is a significant victory for us.” They emphasized that the SEC cannot proceed with the case as it stands.
Please note that the views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
Editor’s Choice: Although the SEC President opposes the Financial Technology and Innovation for the 21st Century Act, the White House has not vetoed it. US Bitcoin ETFs have reached a new record with over 850K under management.
