SEC v Debt Box: SEC Files Motion to Dismiss to Avoid Sanctions
On Tuesday, January 30, the SEC filed a Motion to Dismiss in the SEC v Debt Box case. Within the Motion to Dismiss filing, the SEC argued sanctions are inappropriate and unnecessary. The SEC also outlined corrective measures to prevent further misrepresentations. Proposed corrective measures included,
“Mandatory training for all Enforcement Division staff involved in investigations and litigation on the importance of candor and the duty to promptly correct any inaccuracies, as well as the unique conditions that apply when seeking emergency relief.”
The case grabbed the crypto headlines in December 2023. In December, Judge Robert Shelby ordered the SEC to show cause why the court should not sanction SEC lawyers for making false and misleading representations to the court.
The SEC filed charges against Debt Box in July 2023, alleging that the firm sold unregistered securities.
Amicus Curiae attorney John E Deaton responded to the Court order in December, saying,
“The SEC never lets the truth get in the way of their lies. The case was much bigger than XRP. But, I did buy more XRP AFTER the lawsuit because I knew we would win. Plus, It was like betting on myself and betting the judge would follow the law.”
Ripple Co-Founder Chris Larsen Hack Sent XRP Below the $0.50 Handle
On Wednesday, XRP holders became the victim of fake news. Reports of hackers accessing 213 million XRP through Ripple wallets sent XRP to a low of $0.4861.
Chris Larsen responded to the reports, stating that hackers gained unauthorized access to his personal wallets.
Ripple CEO Brad Garlinghouse had this to say about the inaccurate reporting,
“Given some irresponsible speculation and reporting, I want to reiterate that NO Ripple-managed wallets were compromised. Full stop.”
For the current week, XRP was down 2.96% to $0.5086 from Monday to Saturday. There were no SEC v Ripple case-related updates to influence investor sentiment in the week. The SEC and Ripple await a Judge Analisa Torres ruling on the SEC Motion to Compel.
