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Coinbase Unlocks Debt Box Assets Amid SEC Controversy

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Coinbase lifted the asset freeze on Debt Box after discovering discrepancies in the Securities and Exchange Commission’s (SEC) representation of its case against the company.

In a February 13 job On social media platform SEC’s Mistakes” and criticized the regulator’s lack of immediate action. rectification after recognizing its misleading position.

According to Grewal, Coinbase challenged the SEC’s order because the regulator “remained silent” instead of “immediately withdrawing its order after admitting that it misled the Court.” Attempts to obtain an explanation from the authorities proved futile as they were met with “further silence”.

Therefore, Coinbase chose to unblock the assets, correcting the error while awaiting clarification from the SEC, which remained silent.

“We have now righted this wrong by unfreezing the assets,” Grewal said.

Grewal added that the SEC’s decision to dismiss the case without prejudice and without mandatory training was an insufficient remedy for its actions.

SEC versus debt box

The SEC’s prosecution of Debt Box has sparked a firestorm of criticism over its handling of the emerging crypto industry.

Controversy arose when revelations surfaced about SEC attorneys presenting false and misleading evidence in their bid for a TRO against DEBT Box. U.S. District Judge Robert Shelby asked the lawyers for an explanation of why they should not face sanctions for their actions.

After careful review, the SEC admitted its error and committed to preventing such failures. They asked the court to grant a motion to dismiss the action without prejudice as the sole sanction.

Yet criticism of the SEC’s handling of the Debt Box case has not abated. Several crypto players and US lawmakers, including JD Vance, Thom Tillis, Bill Hagerty, Cynthia Lummis and Katie Boyd Britt, have condemned the regulator’s conduct as “unethical and unprofessional.”

“Regardless of whether Commission staff deliberately misrepresented evidence or unknowingly presented false information, this case suggests that other enforcement proceedings brought by the Commission may merit scrutiny.” It is difficult to ensure that other cases are not based on questionable evidence, obfuscation, or outright misrepresentation,” the lawmakers wrote.



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