Federal Judge Rules SEC Must Pay Legal Costs for Crypto Company After "Gross Abuse of Power"

A federal judge has ordered the U.S. Securities and Exchange Commission (SEC) to pay legal costs for DEBT Box, a Utah-based crypto company, after finding that the regulator had committed a "gross abuse of power" in its efforts to secure a temporary restraining order against the company. The SEC had sued DEBT Box last year, alleging fraud and securing a temporary asset freeze and restraining order against the company. However, Chief Judge Robert Shelby found that the SEC's attorneys had misled the court both in applying for the temporary restraining order and afterward, and ordered the regulator to pay defendants' and receivers' fees as part of the court's sanctions. The SEC is currently reviewing the decision.