The US District Court for the District of Utah has dismissed the SEC’s case against DEBT Box without prejudice and imposed over $1.8 million in fines against the watchdog for bad faith conduct.The fines, which come in the form of attorney fees and costs, follow sanctions against the SEC for misrepresentations made to obtain emergency ex parte relief.The court granted the SEC’s motion to dismiss the current case without prejudice, which will allow the agency to file a future related case in the same court before the same judge.DEBT Box and other defendants had argued that the case should be dismissed with prejudice to prevent the SEC from pursuing further enforcement actions against the firm. However, the firm said the ruling was a positive development.DEBT Box added:“This is a significant win for us. It means that the SEC cannot proceed with the case as it stands.”The court declined to dismiss the case with prejudice because the process is in its early stages, the defendants have not spent significant amounts on trial expenses, and the SEC’s enforcement activities are in the public’s interest.The SEC initiated enforcement action against DEBT Box in July 2023 over allegations of involvement in a $50 million fraud scheme. The regulator subsequently secured a temporary restraining order and asset freeze against the firm.Later proceedings found that the SEC had provided misleading information to the court when it justified its orders, including incorrectly describing the recency of account closures and mistaking domestic transactions for international transactions.In March, the court imposed sanctions on the SEC for its misconduct and ordered it to pay fines.At the time, the court ruled that the SEC could not refile its case — a decision that the SEC’s request for dismissal without prejudice has successfully reversed.Before transitioning to crypto writing in 2018, Mike studied library and information sciences. Currently, he resides on Canada’s West Coast.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Get the latest crypto news and expert insights. Delivered to you daily.Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.Rob Marrocco believes crypto ETFs beyond Bitcoin and Ethereum are unlikely without first establishing a futures market or changing regulation.Ripple said Standard Custody CEO Jack McDonald would help the firm achieve its USD-backed stablecoin plans.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
