Expert Hopes Court Orders SEC to Pay Damages to Debt Box For Misrepresenting Facts 

Attorney Deaton comments on the SEC v. Debt Box lawsuit, hopes the court orders the regulator to pay some damages for presenting false and misleading claims to obtain a temporary restraining order (TRO). 

Pro-XRP lawyer John Deaton has issued fresh comments regarding a federal judge threatening to sanction SEC lawyers in the commission’s case against crypto project Debt Box. 

Judge May Sanction SEC Lawyers 

Last week, Judge Robert Shelby warned the SEC lawyers in the Debt Box lawsuit that he may sanction them for presenting misleading and false claims to obtain a temporary restraining order (TRO) against the crypto firm. 

It is worth mentioning that the SEC alleged that Debt Box was closing its accounts and moving its funds out of the U.S. However, the SEC lawyers did not inform the court that Debt Box’s accounts were being closed by banks and that the funds were moved to a Credit Union and not out of the U.S. 

The judge dissolved the TRO after Debt Box’s attorney proved that the SEC made false claims to obtain the order. As a result, Judge Shelby ordered the SEC lawyers to show cause why they should not be sanctioned for the misrepresentation. 

Deaton, who previously commented on the matter, issued fresh comments regarding the development in a recent tweet. 

Deaton Highlights How SEC Obtained TRO Against Debt Box

According to Attorney Deaton, the Debt Box case is a clear example indicating why Judge Sarah Netburn, in the Ripple case, told the world that SEC lawyers lack faithful allegiance to the law and will do anything to advance its own agenda. 

Explaining how the SEC obtained the TRO order in the Debt Box case, Deaton said the commission submitted an ex parte application. He noted that Debt Box’s lawyers were unaware of the filing. Thus, Debt Box could not challenge the SEC’s request for a TRO. 

“In a TRO, the SEC claims notifying the defendant will likely result in them destroying evidence or secretly transferring assets overseas,” he said. 

Per Deaton, the Debt Box judge initially assumed that the SEC had faithful allegiance to the law and would not misrepresent facts. However, Deaton said the judge failed to go through Judge Netburn’s memo in the Ripple lawsuit, where she referred to the regulator’s lawyers as hypocrites. 

Interestingly, Attorney Deaton hopes the judge fines the SEC lawyers involved in the Debt Box saga and makes the commission pay some damages to the crypto firm. 

“If I were the judge I would also ban the SEC attorneys from ever appearing in any of my cases again,” he added.