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SEC to Shut Down Office Behind Failed DEBT Box Crypto Lawsuit
The Salt Lake City office of the Securities and Exchange Commission, known in the cryptocurrency world for its failed fraud lawsuit against DEBT Box, it will turn off after seeing “significant attrition” among its staff, some of whom were kicked off the case.
SEC lawyers Michael Welsh and Joseph Watkins resigned in April after a federal judge sanctioned them for committing a “serious abuse of power” in an attempt to freeze the assets of Utah-based cryptocurrency company DEBT Box on misleading grounds. Just last week the judge fired that case and ordered the SEC to pay DEBT Box $1.8 million in legal fees.
“The agency considered its budget and organizational efficiency in deciding to close the office, and has no plans to close any other regional offices,” it said in a news release.
The regulator’s Denver office will assume control of any enforcement jurisdiction, the SEC said.