Coinbase CLO Criticizes SEC After Shutting Down Office Involved in DEBT Box Case
United States Securities and Exchange Commission (SEC) will close one of its eleven regional offices after a federal judge ordered the regulator to pay approximately $1.8 million in attorney and retainer fees. As the latest news spread, many crypto industry stakeholders reacted, including Coinbase’s Chief Legal Officer Paul Grewal. He criticized the agency as plans to close the Salt Lake office were announced.
The SEC announced in a June 4 notice that it will close its Salt Lake Regional Office in 2024. This closure is attributed to significant attrition at the office and operations will be shifted to Denver. This decision comes after Judge Robert Shelby dismissed the SEC’s civil lawsuit against Digital Licensing. DEBT Boxand an order requiring the SEC to pay significant fees.
DEBT Box Lawsuit Seeks SEC Office Shutdown
Judge Shelby dismissed the SEC’s lawsuit against DEBT Box, alleging that the company operated an illegal $50 million crypto scheme. In March, the judge found that the SEC had engaged in bad faith over the temporary restraining order to freeze DEBT Box’s assets. As a result, the judge entered an enforcement order against the SEC and ordered the regulator to pay all attorneys’ fees and costs resulting from the imprudent unilateral action.
The decision required the SEC to pay approximately $1 million in attorneys’ fees and costs and $750,000 in receivership fees and costs. This financial penalty significantly influenced the decision to close the Salt Lake District Office. The office’s responsibilities will be transferred to the SEC’s Denver office, ensuring that ongoing regulatory efforts will continue uninterrupted.
The SEC’s Salt Lake Regional Office experienced significant attrition that contributed to its closure. Two SEC attorneys from that office reportedly resigned over the handling of the DEBT Box case. Their departures may have affected the attrition the SEC cited in its decision to close the office.
The commission did not comment on whether these resignations directly affected the decision. But the timing points to a possible correlation. The closing announcement raised questions about the SEC’s internal difficulties handling high-profile cases, especially those involving cryptocurrency firms.
Terraform Labs Agreed with the Agency
This development comes as the SEC initiated enforcement actions against several cryptocurrency firms, including Coinbase, Binance, Kraken, and others. ripple (XRP). The agency’s aggressive stance on crypto regulation has led to numerous legal battles, some of which have turned out negatively for the SEC.
Lawyers and co-founder of Terraform Labs in May Do Kwon It was announced that they had reached an agreement in principle with the SEC. These legal commitments highlight the SEC’s ongoing efforts to regulate the crypto market despite facing setbacks such as the DEBT Box case.
Paul GrewalCoinbase’s chief legal officer commented on the SEC’s actions in a June 4 post, suggesting that the term “attrition” might downplay the significance of the SEC’s conduct in the DEBT Box case. The SEC’s approach to crypto regulation remains a controversial issue in the industry.
So read: MiCA Regulations: tether CEO Criticizes Bank Deposit Requirement for Stablecoins
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Maxwell is a crypto-economic analyst and Blockchain enthusiast who is passionate about helping people understand the potential of decentralized technology. I write extensively on topics like blockchain, cryptocurrency, tokens, and more for many publications. My goal is to spread knowledge about this revolutionary technology and its effects on economic freedom and social well-being.
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