Bitrabo Editorial
The US Securities and Exchange Commission (SEC) is shutting down its Salt Lake City office due to issues in the crypto industry enforcement and recent case outcomes. The decision is a response to significant attrition within the office.
Being the only regional SEC office in Salt Lake City with enforcement powers limited to Utah, its jurisdiction will be transferred to the Denver office. The SEC plans to keep its other regional offices operational.
Setback in Debt Box Crypto Case
Following a failed case against Debt Box, also known as Digital Licensing, the closure of the Salt Lake City office was announced. The office’s shutdown is linked to its struggle in the Debt Box case but not solely caused by it.
In a previous development, the SEC secured a temporary asset freeze against Debt Box, accusing the platform of defrauding investors. However, judge concerns over SEC lawyers’ actions led to a subsequent apology and a motion to dismiss the case.
SEC Faces Sanctions and Fee Payment
Despite attempts to rectify the situation, the SEC faced sanctions and was ordered to pay around $1.8 million in legal fees to Debt Box related to the case. Moreover, the judge rejected the SEC’s motion to dismiss the lawsuit outright.
Debt Box considered the dismissal a triumph while the SEC continues to deal with legal challenges involving various crypto companies like Binance, Kraken, Ripple, and Coinbase.
Following the Debt Box case fallout, personnel changes occurred in the Salt Lake City office with resignations from two SEC lawyers and the office director. The SEC is now under scrutiny for its handling of the failed case amid ongoing engagements with major players in the crypto industry.
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