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United States SEC lawyers resign after judge blasts agency for 'abuse' of power in crypto fraud trial: Bloomberg
Two U.S. Securities and Exchange Commission lawyers recently resigned after a Utah judge reprimanded the agency for a “gross abuse” of power," according to Bloomberg, which cited anonymous sources.
The SEC was planning to fire the two lawyers if they didn't step down, the report also said. A federal district court judge in Utah had criticized the SEC attorneys, saying their case was "marred by false statements and misrepresentations."
According to the report, back in July, the SEC accused the crypto platform Debt Box "of defrauding investors of at least $49 million." Last month, the judge officially called out the SEC for its alleged missteps in putting together its case against the company.
Crypto organizations and the SEC have historically had a combative relationship with the government agency. Some of the top crypto companies in the U.S., including Coinbase, have at times locked horns with the financial regulator.
The SEC has already moved to dismiss the case against Debt Box, but the judge has yet to respond, according to the report.
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About Author
RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.
