SEC Lawyers Resign After Judge Accuses Agency of Power Abuse in Crypto Case

Two Securities and Exchange Commission (SEC) lawyers resigned after harsh criticism from a Utah federal judge, who accused the agency of "gross abuse" of power, reported Bloomberg citing anonymous sources.

The lawyers were involved in a controversial case against cryptocurrency firm Debt Box, previously known as Digital Licensing Inc.

The case accused Debt Box of defrauding investors of $49 million but was marred by false statements, leading to the judge's public reprimand of the SEC's actions.

The judge highlighted a significant misuse of authority by the SEC attorneys, which led to their resignation; they were reportedly facing termination otherwise.

Following these developments, the SEC decided to dismiss the lawsuit against Debt Box, although the overseeing judge has yet to respond.

This incident emphasizes the strained relationship between the SEC and the cryptocurrency industry, marked by frequent clashes with entities like Coinbase.

This incident highlights the challenges regulatory bodies face in managing the complex cryptocurrency markets and questions the effectiveness of current regulatory tactics.

The fallout could prompt significant changes in regulatory oversight within the cryptocurrency sector, stressing the need for fairness and transparency in legal proceedings.