Coinbase CEO Criticizes The SEC Regarding The DEBT Box

(CTN News) – Coinbase’s Chief Legal Officer (CLO), has joined a chorus of voices criticizing the way the SEC handled the DEBT Box case. DEBT Box’s assets have been frozen after the SEC admitted that it misrepresented evidence, leading to Grewal’s condemnation.

CLO of Coinbase slams SEC for DEBT Box legal drama

As Grewal pointed out, the SEC did not mince words when it criticized Grewal’s remarks when it publicly acknowledged that it had been deceived. The Coinbase CLO noted recently on X that they were aware that the TRO against DEBT Box was “tainted by SEC misinterpretation.”

Further, Grewal noted, “Despite admitting that it deceived the Court, the SEC sat silently instead of pulling its order.” Thus, it is clear that the regulatory body lacks accountability.

In addition, Coinbase has chosen to defy the SEC’s order to freeze assets associated with the DEBT Box service by defying the order. As a result, Grewal said, “rather than continue this injustice, we told the SEC that we would not comply further unless they explained why.”

According to the Coinbase CLO’s statement, the crypto exchange corrected the wrong by unfreezing the assets while the SEC remained silent.

“A dismissal without prejudice, along with a few hours’ training, is hardly adequate,” Grewal claimed, pointing out the SEC’s ineffective response to the issue. To prevent similar incidents in the future, the SEC announced broader corrective measures in response to mounting pressure.

In the case of Digital Licensing Inc., also known as DEBT Box, the SEC falsely accused the company after it’s lawyers misrepresented information in court and made no effort to correct their errors. Earlier this year, United States District Judge Robert Shelby issued a strong rebuke to the Securities and Exchange Commission for some of its missteps.

American senators doubt SEC’s integrity

Senators J.D. “Vance” and Cynthia Lummis raised similar concerns, which the Coinbase CLO echoed. SEC Chair Gary Gensler received a letter from these senators expressing deep concerns about the commission’s enforcement practices.

Senators emphasized the significance of the situation by stating, “It is unconscionable for any federal agency to behave in such an unethical and unprofessional manner.”

This episode stems from a mishandling of evidence by the SEC, which led to the freezing of DEBT Box’s assets at Coinbase as a consequence of the SEC’s mishandling of evidence.

Grewal remains skeptical of the SEC’s action, despite the agency’s subsequent decision to dismiss the case, emphasizing the need for greater accountability and transparency in regulatory proceedings in spite of the agency’s decision to dismiss the case.

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