Pro-XRP lawyer John Deaton has criticized the United States Securities and Exchange Commission (SEC) for withdrawing its high-profile case against crypto project DEBT Box.
Deaton, aligning with other XRP enthusiasts in the crypto community, has condemned SEC Chair Gary Gensler’s leadership and handling of the recent DEBT Box lawsuit. He pointed to a consistent pattern of controversial legal strategies employed by the SEC, citing instances such as the Grayscale Bitcoin ETF rejection and the XRP lawsuit.
@GaryGensler this disgrace falls under your leadership, or the lack thereof. First, your lawyers were described by a federal judge as hypocrites lacking faithful allegiance to the law in the @Ripple case. Later, an Appellate Court ruled your denial of a spot #BTC ETF was… https://t.co/PExezQwmXE
— John E Deaton (@JohnEDeaton1) January 30, 2024
The attorney noted that a US federal judge dubbed the federal agency hypocritical and lacking faithful allegiance to US law on Ripple’s case. Deaton emphasized that despite these previous “humiliating” legal experiences, the SEC lawyers continued disregarding the truth and justice on matters related to their connection with the cryptocurrency industry.
Deaton’s remarks were prompted by a post on X by Fox Business journalist Eleanor Terett, who criticized the securities regulator for trying to avoid accountability for misleading the Court in its pursuit of a restraining order and asset freeze against DEBT Box.
🚨NEW: The @SECGov has just filed a brief in the @DebtBox case saying that it intends to dismiss the lawsuit against the company.
The SEC is choosing dismissal rather than face possible sanctions from the judge for misleading the court in order to secure a restraining order and… pic.twitter.com/ByxkG6prV4
— Eleanor Terrett (@EleanorTerrett) January 30, 2024
In August of the previous year, a US District Court granted the SEC permission to temporarily freeze DEBT Box’s assets and impose a restraining order over allegations that it operated a fraudulent scheme. However, after presenting evidence, the Court found the SEC’s claims false and misleading. In November, Judge Robert Shelby instructed SEC lawyers to provide explanations for the sanctions they requested earlier.
On Tuesday, January 24, 2024, the securities regulator filed a brief acknowledging that its attorneys should have been more transparent with the Court. The agency admitted that sanctions weren’t appropriate in handling the DEBT Box case and asserted its commitment to addressing identified issues with the Court that may warrant further consideration.
This development follows DEBT Box’s request that the Court sanction the SEC for its misleading accusations and order the regulator to drop the case entirely. The crypto firm cited personal and financial damages resulting from the previous restraining order the Court granted against it.
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