The Bank for International Settlements (BIS) Annual Economic Report 2024, published on June 30, highlights the significant risks posed by rising public debt levels across both advanced and emerging market economies. The report stresses that without fiscal consolidation, debt trajectories will remain unsustainable, threatening macroeconomic stability. As interest rates rise, refinancing needs and higher debt […]
Bitcoin News
Analyst Predicts: US to Face Its Own ‘Bank of England’ Debt Crisis Prior to Elections
Otavio Costa, a Macro Strategist at Crescat Capital, a multidisciplinary asset management firm, has expressed concern about the state of the U.S. government securities liquidity index and its potential implications for the future of U.S. debt. He suggested that the U.S. is on the verge of experiencing its own ‘Bank of England’ moment prior to […]
Bitcoin News
Former House Speaker Paul Ryan: Stablecoins Can Help Fight an Upcoming US Debt Crisis and China’s Growing Influence
Paul Ryan, a former speaker of the House of Representatives, has assessed the possible role that stablecoins will play in fighting an upcoming U.S. debt crisis. According to Ryan, the demand derived from the increasing relevance of dollar-backed stablecoins, which use U.S. treasuries as backing, will help keep a healthy demand on U.S. debt and […]
Bitcoin News
Trump Interested in Using Bitcoin to Solve the US National Debt Problem
Former President and Republican Presidential Candidate Donald Trump reportedly inquired about solving the U.S. national debt problem using bitcoin. Audio recorded by the Bitcoin.com News team confirmed that on an X space held on Sunday night, Bitcoin Magazine CEO David Bailey revealed that Trump asked if bitcoin could solve the trillion U.S. national debt […]
Bitcoin News
SEC Ordered to Pay $1.8M for Misconduct — Debt Box Hails ‘Monumental Victory’ for Crypto Industry
A federal judge has ordered the U.S. Securities and Exchange Commission (SEC) to pay over .8 million in its case against the crypto firm Digital Licensing, also known as Debt Box. The penalty resulted from the SEC’s bad faith conduct in obtaining and defending an ex parte temporary restraining order (TRO) based on misrepresentations. Additionally, […]
Bitcoin News
Trump Inquired if Bitcoin Could Aid in Solving the $35 Trillion US National Debt Problem
David Bailey, CEO of Bitcoin Magazine and a cryptocurrency aide of the Trump campaign, revealed that the former president asked if Bitcoin could be leveraged to solve the U.S. national debt problem. During an X space on Sunday night, Bailey revealed that the first time he met Trump, he asked if Bitcoin could do anything […]
Bitcoin News
Galaxy CEO: US Debt Crisis Drives Demand for Bitcoin
Galaxy Digital CEO Mike Novogratz has proposed several measures to prevent a U.S. debt spiral. The executive explained that the U.S. debt crisis makes it “so easy to convince people to buy bitcoin and other hard assets.” He emphasized that implementing these measures could give the U.S. a chance to avoid a “debt death spiral.” […]
Bitcoin News
Former IMF Economist Raises Alarm on US Debt as Atlanta Fed Chief Signals Potential Rate Cuts
A leading economist has expressed deep concern over America’s soaring trillion national debt, warning of no significant efforts to mitigate it. Meanwhile, Federal Reserve Bank of Atlanta President Raphael Bostic suggests a potential easing of policy rates by summer. Ex-IMF Chief Economist Voices Concern Over Soaring U.S. Debt Olivier Blanchard, a senior fellow at […]
Bitcoin News
US Senators Slam SEC for Operating in ‘Unethical and Unprofessional Manner’ in Debt Box Case
Five U.S. senators have expressed their concerns to the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, regarding the agency’s enforcement action against crypto firm Debt Box. The court found that the SEC made “materially false and misleading representations.” The lawmakers stressed: “We are greatly concerned by the Commission’s conduct in this […]
Bitcoin News
SEC Moves to Dismiss Lawsuit Against Crypto Company Debt Box, Citing Inaccuracies in Court
The SEC has decided to abandon its lawsuit against Debt Box, a crypto company previously accused of defrauding investors of millions. This decision follows the SEC’s acknowledgment of presenting misleading information in court, a revelation that undermines the agency’s case and credibility.
Inaccuracies in Court Lead SEC to Drop Fraud Case Against Crypto Firm Debt Box
The U.S. Securities and Exchange Commission (SEC) has requested to dismiss its lawsuit against crypto startup Debt Box. The decision comes after the SEC admitted to making inaccurate statements in court.
The lawsuit, initially filed against Digital Licensing Inc., which does business as Debt Box, accused the company of defrauding investors of at least million. The SEC claimed that Debt Box offered “node licenses” for mining cryptocurrencies that were never actually mined. This action was part of a broader crackdown by the SEC on cryptocurrency firms, under the leadership of Chair Gary Gensler who has repeatedly stated that most cryptocurrencies are securities.
However, the case took a turn when the SEC’s attorneys acknowledged that they had fallen short of the court’s expectations for accuracy and candor. This admission came after U.S. District Court Judge Robert Shelby in Utah criticized the SEC lawyers and demanded explanations for what he termed “false or misleading” statements.
The SEC had previously asserted that Debt Box was attempting to transfer assets overseas to evade U.S. jurisdiction, a claim that Judge Shelby found to be misrepresented. Judge Shelby gave the SEC a “show cause order,” which basically meant the SEC had to give a good reason or explanation for its actions.
In response to the court’s order to show cause, the SEC filed a statement on Jan. 30, stating,
While the Commission recognizes that its attorneys should have been more forthcoming with the Court, sanctions are not appropriate or necessary to address those issues.
The agency expressed its intent to dismiss the lawsuit without prejudice, leaving room for the possibility of refiling the case in the future.
The SEC’s decision to seek dismissal without prejudice has raised questions in the legal and financial sectors, particularly given the agency’s aggressive stance on cryptocurrency regulation. The Debt Box legal team responded sharply to the SEC’s actions, stating, “The SEC got this case wrong. Badly wrong,” and argued that the agency should not be allowed to continue promoting a false narrative to avoid dismissal.
Despite the SEC’s admission of inaccuracies and the subsequent move to dismiss the case, the agency has declined to comment beyond its public filings.
What do you think explains the SEC’s inability to pursue this lawsuit? Share your thoughts and opinions about this subject in the comments section below.