US judge warns SEC of 'false' statement in crypto case

The U.S. federal right Robert Shelby warned lawyers at the Securities and Exchange Commission (SEC) on Nov. 30 about penalties for making "false and misleading" statements in a lawsuit against crypto firm Debt Box. The SEC's representations caused "irreparable harm" to the crypto project, according to the court.

The authority's lawyers could therefore face sanctions for "undermining procedural integrity." The U.S. Securities and Exchange Commission sued Debt Box in July, accusing it of selling unregistered securities and transferring customer funds overseas.

A federal judge then imposed a temporary restraining order against the company, restricting access to its assets. Because Debt Box did not move customers' money overseas, the SEC must now take it to court.

The authority has long been a thorn in the side of the crypto industry. "The SEC has crypto exchanges repeatedly asked to register without any law to support their position and, furthermore, there is no clear path to registration," criticized Kraken.