On May 28, 2024, a federal judge ordered the U.S. Securities and Exchange Commission (SEC) to pay $1.8 million in attorney and receivership fees after dismissing its case against Digital Licensing Inc., also known as DEBT Box. The SEC accused the crypto firm of running a fraudulent $49 million scheme. However, the judge found that the SEC acted in bad faith by presenting misleading information to obtain a temporary restraining order to freeze DEBT Box's assets.
This ruling comes amid broader criticism of the SEC's handling of enforcement actions in the crypto space. Following this ruling, the SEC Office in Salt Lake City announced it's closure.
The Buchalter team, led by Attorney Tucker Levis from the firm's White Collar & Investigations Group, successfully defended their individual client in the lawsuit, achieving dismissal of the charges and obtaining reimbursement for legal fees.
Click here to view Law360 article. *Subscription may be required.
