Crypto Case Fiasco Leads To Complete Shutdown Of SEC Office In This City | Bitcoinist.com



As
a
result
of
its
ongoing


crackdown


on
the
nascent
crypto
industry
and
mounting
unfavorable
results
in
its
cases
against
digital
asset
platforms,
the
US
Securities
and
Exchange
Commission
(SEC)
has
announced
the
impending
closure
of
its
regional
office
in
Salt
Lake
City,
citing
“significant
attrition.” 


The
Salt
Lake
City
office
is
the
SEC’s
sole
regional
outpost,
and
its
enforcement
authority
is
limited
to
a
single
state.
Utah’s
jurisdiction
will
now
be
transferred
to
the
SEC’s
Denver
office
while
the
regulator
affirms
its
commitment
to
keeping
other
regional
offices
open.

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SEC’s
Loss
In
Debt
Box
Crypto
Case 


According


to
the
Wall
Street
Journal,
the
decision
to
close
the
Salt
Lake
City
office
comes
after
a
turbulent
period,
primarily
associated
with
the
SEC’s
failed
enforcement
action
against
Digital
Licensing,
also
known
as
Debt
Box,
a
cryptocurrency
platform. 


People
familiar
with
the
matter
clarify
that
the
office
closure
is
related
to,
but
not
solely
a
consequence
of,
the
SEC’s
setback
in
the
Debt
Box
case.


In
August
of
the
previous
year,
the
Salt
Lake
City
office
secured
a
temporary
asset
freeze
and
restraining
order
against
Debt
Box,
as
it


accused


the
company
and
its
principals
of
defrauding
investors
of
at
least
$49
million. 


However,
in
November,
Judge
Robert
Shelby
expressed
concerns
over
material
misrepresentations
by
SEC
lawyers
from
the
Salt
Lake
City
office
while
obtaining
the
temporary
restraining
order. 

Coinbase Banner  


The
following
month,
SEC
enforcement
director
Gurbir
Grewal
apologized
in
a
court
filing,
and
in
January,
the
agency
filed
a
motion
to
dismiss
the
case.


SEC
Ordered
To
Pay
$1.8
Million
In
Fees


Despite
initial
admissions
of
mistakes
and
apologies
for
the
“shortfall”
in
the
case,
the
SEC’s
attempt
at
damage
control
proved
ineffective.
In
an
80-page
ruling,
Judge
Shelby


imposed
sanctions


on
the
SEC,
requiring
them
to
cover
Debt
Box’s
legal
fees
related
to
the
temporary
restraining
order.
Furthermore,
the
judge
denied
the
SEC’s
motion
to
dismiss
the
lawsuit
without
prejudice. 


The
SEC
faced
another
setback
when


ordered


to
pay
Debt
Box
approximately
$1.8
million
in
fees,
including
receiver
fees
and
legal
expenses.


Debt
Box
expressed
satisfaction
with
the
dismissal,
characterizing
it
as
a
significant
victory.
However,
the
SEC’s
legal
entanglements
within
cryptocurrency
are
far
from
over. 

FreeBitcoin Banner  


The
regulatory
agency
continues
to
face
ongoing
challenges
with
prominent
cryptocurrency
companies
such
as


Binance
,
Kraken,
Ripple,
and
Coinbase,
in
addition
to
its
unresolved
conflict
with
Debt
Box.


The
Salt
Lake
City
office
experienced
personnel
departures
after
the
Debt
Box
case.
Two
SEC
lawyers,
Michael
Welsh
and
Joseph
Watkins,
resigned
in
April,
while
the
office’s
director,
Tracy
Combs,
also
stepped
down
in
May.


As
the
SEC
grapples
with
the
fallout
from
its
failed
enforcement
action
and
the
closure
of
its
Salt
Lake
City
office,
its
engagements
with
major
cryptocurrency
industry
players
remain
in
the
spotlight. 

The
daily
chart
shows
the
total
crypto
market
cap’s
valuation
at
$2.55
trillion.
Source:

TOTAL
on
TradingView.com


Featured
image
from
Shutterstock,
chart
from
TradingView.com 

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Author: Ronaldo Marquez


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