DEBT Box challenges SEC’s attempt to dismiss crypto case

The SEC requested the court to dismiss the case without prejudice, while DEBT Box alleges a double standard is in action.

DEBT Box is urging a federal judge not to grant the Security and Exchange Commission’s recent motion to dismiss its case against the cryptocurrency project, alleging the federal agency is trying to conceal serious “misconduct.” The SEC, following threats of sanctions due to alleged violations, sought dismissal without prejudice last month, potentially allowing it to refile charges in the future. In response to the SEC’s motion, DEBT Box contends that the agency wants to exit the case on its own terms, while leaving the option open to pursue enforcement actions later. DEBT Box argues that the temporary restraining order (TRO) issued against them in August, which was later renewed several times, caused significant disruption, affecting around 300,000 users in over 130 countries, and resulting in a sharp decline in the company’s native token value.

The SEC has identified Jason Anderson, Jacob Anderson, Schad Brannon, and Roydon Nelson, collectively referred to as the “DEBT Council,” as the sole controllers of the platform. Their personal and business assets were frozen by the restraining order, causing difficulties such as inability to pay employees and loan cancellations. Furthermore, the defendants stated in a filing dated Jan. 12th that credit card companies and banks refused to cooperate with them.

In Wednesday’s filing, the defense team argued that the SEC is seeking preferential treatment, wanting different standards applied to it compared to those it regulates or aims to regulate. They highlighted that when individuals or entities are suspected of making false statements in the securities market, the SEC pursues charges under anti-fraud provisions and seeks severe sanctions.

The defendants are also requesting the judge to maintain a March 7 hearing, despite the SEC’s previous request to cancel it.

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