According to Bloomberg, two lawyers from the U.S. Securities and Exchange Commission (SEC) have recently resigned after being accused by a judge of “serious abuse of power” in a lawsuit involving a cryptocurrency company.
The report states that in July of last year, the SEC accused the cryptocurrency platform Debt Box of defrauding investors of at least $49 million and claimed that the company was closing bank accounts and transferring assets overseas. In response to the SEC’s request, Judge Robert Shelby froze the company’s assets and placed it under bankruptcy administration.
However, the court later found that the evidence presented by the SEC lawyers did not match the facts, and Debt Box had no intention of transferring assets overseas. The SEC lawyers admitted their mistake and apologized, while the judge accused the SEC of making “materially false and misleading statements” and severely abusing the power granted by Congress.
Regarding this incident, SEC Enforcement Chief Gurbir Grewal apologized to the court in December of last year for the actions of his department and promised further training for the agency’s enforcement personnel. Additionally, the report also noted that even if these two lawyers had not resigned, the SEC would have actively dismissed them.
