SEC v. DEBT Box

The SEC sued Debt Box to obtain an asset freeze, temporary restraining order, and other emergency relief against defendants in connection with an alleged fraudulent scheme of selling unregistered securities in the form of “node software licensing” for mining digital assets. The SEC's actions were found to be a “gross abuse of power” and the agency was sanctioned for misrepresenting the in evidence against Debt Box to secure the TRO and asset freeze.

The SEC was required to pay Debt Box’s attorney fees and costs associated with the restraining order. This ruling highlighted concerns with SEC’s enforcement approach.

2:23-cv-00482