“The SEC’s Conduct Constitutes a Gross Abuse of Power“ — a US District Court Judge

TL;DR

• The SEC got sanctioned by a US district court judge for a “gross abuse of power” after it misrepresented evidence in order to freeze n’ seize a defendant’s money.

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“I’m not crazy. You’re crazy for thinking this is normal!”

Is this:

A) Something we yelled at our microwave’s instruction manual, after we found out there was no way to reduce the amount of beeps it makes post-heating.

(It’s 12 btw — 12 whole beeps. Once every 5 seconds for a minute straight).

OR

B) Something we yelled at our uncle Steve during family dinner, when he said the SEC “wasn’t acting with any clear bias.”

The answer is: C) Both happened.

Circling back to option B) — as of today, we now have legal precedent that can be taken to next month’s family get-together, and promptly thrown in Steve’s face.

Cause a US district court just imposed sanctions on the SEC for acting in “bad faith” in a lawsuit it brought against Debt Box.

In the matter, Judge Robert R Shelby said (quote):

“The SEC's conduct constitutes a gross abuse of the power entrusted to it by Congress and substantially undermined the integrity of these proceedings and the judicial process.“

Cool. Why though?

Basically, the SEC requested that the courts freeze all of Debt Box’s funds without notifying them, citing that they’d already sent $720k out of the country, which made them flight risks.

Only thing was — the SEC were telling porky pies about the transfer. The money never left the country. As a result, Judge Shelby came down hard on the Commission.

What does this mean for the SEC’s broader war with the crypto industry?

Not much. It’s just nice to win one (however big or small).