HBAR Coin Crypto Prices Have Soared More Than 90%, Here's Why

Two lawyers for the Securities and Exchange Commission (SEC) resigned after a federal judge sanctioned and reprimanded the Wall Street regulator. This is due to the “massive abuse” of power in the case of crypto.

Quoted from Yahoo Finance, written Wednesday (24/4/2024), Michael Welsh and Joseph Watkins resigned this month after an SEC official told them they would be fired if they stayed, according to a source familiar with the matter. The pair are lead attorneys in the case against Digital Licensing Inc, the crypto platform known as DEBT Box.

Salt Lake City federal district court Judge Robert Shelby said the regulator's lawsuit against DEBT Box was “marred” by false statements and misrepresentations, as well as a lack of evidence.

Shelby took the extreme step of sanctioning the agency for abuse of power in March. The SEC chief has apologized for the misstep.

Both Welsh and Watkins did not respond to calls seeking comment. The SEC declined to comment, as did union representatives.

In July, the SEC accused DEBT Box and its executives of defrauding investors of at least USD 49 million. At the request of regulators, Shelby froze the company's assets and put the company into receivership.

However, the asset freeze was reversed after Shelby discovered the SEC may have made “false and misleading statements.” The judge will sanction the SEC for “gross abuse of the power entrusted to it by congress” and order the agency to pay a portion of DEBT Box's attorney fees.