{"id":479270,"date":"2024-02-09T12:25:06","date_gmt":"2024-02-09T12:25:06","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=479270"},"modified":"2024-02-09T12:25:06","modified_gmt":"2024-02-09T12:25:06","slug":"u-s-senators-chastise-the-sec-in-letter-to-gary-gensler-citing-unethical-and-unprofessional-handling-of-debt-box-case","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/u-s-senators-chastise-the-sec-in-letter-to-gary-gensler-citing-unethical-and-unprofessional-handling-of-debt-box-case","title":{"rendered":"U.S. Senators Chastise The SEC In Letter To Gary Gensler, Citing \u201cUnethical And Unprofessional\u201d Handling Of DEBT Box Case"},"content":{"rendered":"

Republican lawmakers chastised the <\/span>U.S. Securities and Exchange Commission (SEC) in a letter to chair Gary Gensler that called the regulator’s handling of a lawsuit against DEBT Box ”unethical and unprofessional.”<\/span><\/p>\n

The criticism was made in a Feb. 7 <\/span>letter<\/span><\/a> that said the court had said the SEC had made “materially false and misleading representations…and undermined the integrity of the proceedings” in the case against Digital Licensing Inc., also known as DEBT Box. <\/span><\/p>\n

The document was signed by five senators on the Senate Banking Committee, including J.D. Vance (R-Ohio) and Cynthia Lummis (R-Wyo.).<\/span><\/p>\n

“We are greatly concerned by the Commission’s conduct in this case,” the letter said. “It is unconscionable that any federal agency—especially one regularly involved in highly consequential legal procedures and one that, under your leadership, has often pursued its regulatory mission through enforcement actions
\nrather than rulemakings—could operate in such an unethical and unprofessional manner.”<\/p>\n

\"Gary<\/p>\n

SEC Lawyers Make False Statements During DEBT Box Case<\/span><\/h2>\n

In a July, 2023 <\/span>filing<\/span><\/a>, the SEC said DEBT Box had closed 33 bank accounts in the previous 48 hours. The agency then stated that the defendants were blocking investigators from viewing social media pages, leading to the court, at the agency’s request, to freeze the company’s assets. <\/span><\/p>\n

The letter noted that this effectively shut down DEBT Box, and caused its native token to crash by more than 56 percent.<\/p>\n

The SEC’s Enforcement Division Director, Grubir Grewal, later admitted to misrepresentations that were unknown at the time, but the letter says the SEC’s attorneys failed to correct that statement when they learned of the inaccuracy.<\/p>\n

\n

I've just read over the documents in the Debt Box case and this is absolutely shocking behavior. The SEC went to a judge seeking an emergency order to paralyze several businesses and blatantly misrepresented facts to get it before anyone on the other side could defend themselves.<\/p>\n

— David \"JoelKatz\" Schwartz (@JoelKatz) December 5, 2023<\/a><\/p><\/blockquote>\n