Token

Circuit

Edge

Grayscale Bitcoin Trust

<img width="1920" height="1080" src="https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene.jpg" class="attachment-full size-full wp-post-image" alt="SEC Engagement" decoding="async" style="float:right; margin:0 0 10px 10px;" srcset="https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene.jpg 1920w, https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene-300x169.jpg 300w, https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene-1224x689.jpg 1224w, https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene-768x432.jpg 768w, https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene-1536x864.jpg 1536w, https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene-678x381.jpg 678w, https://coingape.com/wp-content/uploads/2023/11/coin-sec-us-securities-and-exchange-commission-3d-model-max-obj-3ds-fbx-unitypackage-tbscene-150x84.jpg 150w" sizes="(max-width: 1920px) 100vw, 1920px">
<p>The U.S. Securities and exchange commission faced embarrassing comments from a federal judge in Utah on December 1, 2023 in a case involving mishandling of assets worth millions of dollars belonging to a crypto company. This marks a series of legal setbacks the agency has faced in the last 365 days, the biggest of which is the <a href="https://coingape.com/tag/xrp-lawsuit/" target="_blank" rel="noopener noreferrer nofollow">XRP lawsuit</a> verdict delivered in July 2023. In 2023 alone, the Debt Box debacle becomes the third such setback for the Commission.</p>
<p>Also Read: <a href="https://coingape.com/bitcoin-btc-price-moves-closer-to-40000-as-fed-stays-put-on-rate-hikes" target="_blank" rel="noopener noreferrer nofollow"><strong>Bitcoin (BTC) Price Moves Closer to $40,000 As Fed Stays Put on Rate Hikes</strong></a></p>
<h2 id="us-sec-faces-sanctions-threat">US SEC Faces Sanctions Threat</h2>
<p>Earlier, CoinGape <a rel="noopener noreferrer nofollow" href="http://coingape.com/us-sec-faces-threat-of-court-sanctions-over-handling-of-crypto-firm" target="_blank">reported</a> that a federal judge heavily criticized the alleged misrepresentation of facts by the Commission in its attempt to get a temporary restraining order for freezing funds belonging to crypto firm Debt Box. In the court order, the judge mentioned that the Commission made “<strong>materially false and misleading representations</strong>” to freeze millions of dollars worth of assets belonging to the company. With this, the SEC attorneys face the danger of getting sanctioned by the Utah court.</p>
<p>Prior to this, the SEC was severely criticized for its actions against crypto companies in several court proceedings. Here are some of the court comments against the SEC in recent times, as <a rel="noopener noreferrer nofollow" href="http://twitter.com/s_alderoty/status/1730649158367973799" target="_blank">described</a> by Stuart Alderoty, Chief Legal Officer of Ripple as a “troubling pattern.”</p>
<h3 id="july-12-2022">July 12, 2022</h3>
<p>In the Ripple Vs SEC lawsuit, the court said the SEC “<strong>demonstrated hypocrisy</strong>” by making inconsistent arguments to the Court. This comes in close parallel with the December 1, 2023 Debt Box case proceedings in which the judge said the SEC misled the court leading to irreparable harm to the company. In the Ripple lawsuit proceeding, the court also said the SEC was not acting out of a faithful allegiance to the law.</p>
<h3 id="june-6-2023">June 6, 2023</h3>
<p>In response to crypto exchange Coinbase’s <a href="https://coingape.com/coinbase-urges-court-to-compel-sec-action/" target="_blank" rel="noopener noreferrer nofollow">appeal</a> to compel the US SEC to react to its petition on crypto rulemaking, the Court sided with the exchange stating that “the <strong>SEC defaulted on its duty to respond in good faith</strong>” to the petition.</p>
<h3 id="august-29-2023">August 29, 2023</h3>
<p>The US Court of Appeals for the District of Columbia Circuit <a href="https://coingape.com/grayscale-spot-bitcoin-etf-sec-lawsuit-crypto-news/" target="_blank" rel="noopener noreferrer nofollow">gave</a> Grayscale a win against the SEC in the lawsuit over converting the Grayscale Bitcoin Trust to a spot Bitcoin ETF. By rejecting the Grayscale application, the SEC was involved in “inconsistent treatment of similar products” and added the the SEC officials were acting in an “<strong>arbitrary and capricious</strong>” manner.</p>
<p>Also Read: <a href="https://coingape.com/crypto-market-on-edge-as-major-token-unlock-events-loom" target="_blank" rel="noopener noreferrer nofollow"><strong>Crypto Market on Edge as Major Token Unlock Events Loom</strong></a></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://coingape.com/crypto-cases-in-2023-in-which-us-sec-got-humiliated/">Timeline: 3 Crypto Cases In 2023 In Which US SEC Got Humiliated</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coingape.com">CoinGape</a>.</p>

Timeline: 3 Crypto Cases In 2023 In Which US SEC Got Humiliated

Table of Contents

Coingape News Media

Other articles published on Dec 2, 2023

Grayscale Expects SEC Green Light for Bitcoin ETF Transition

Bitcoin facing imminent global money supply rally, contrary to halving theory

The Hidden Gem: ScapesMania Presale Already Reached $1M, Unstoppable Momentum Ahead

FTX Exchange Faces $24 Billion Tax Bill from IRS Amid Ongoing Legal Battles and Bankruptcy Woes

Did the SEC Mislead the Court in DEBT Box Lawsuit? Judge Issues Warning

Exploring Blockchain as a Revolutionary Force Reshaping the e-Commerce Landscape

Join our free newsletter for daily crypto updates!