SEC ‘deeply regrets’ errors in crypto case, asks judge to waive sanctions after misleading statements

Attorneys for the Securities and Exchange Commission apologized to a U.S. District Judge on Thursday for providing unfavorable insights that were used in making a restraining order and asset freeze decision against a crypto firm. Submitted in a filing to the U.S. District Court of Utah along with the extraordinary order, the SECs attorneys composed “the commission regrets these orders and promises to require training for the staff members included in the investigation.” In his written response, Gurbir Grewal, the Chief of Enforcement for the SEC said: “I am cognizant that I am entrusting an extraordinary responsibility in the SEC when enforcing federal securities laws and I regret and apologize for attaining an unsatisfactory result in this case.” The rare novelty from the SEC came about as a result of the litigations derived in July against Digital Licensing Inc., or DEBT Box – alleging they defrauded investors of around $50 million. As part of the lawsuit, the SEC challenged temporary restraining order and asset consequation against the firm and its directors postulating that they were transferring operations abroad for deceptive activities.

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