Ripple CTO David Schwartz Accuses SEC of Mishandling Debt Box Case
Ripple’s Chief Technology Officer (CTO), David Schwartz, recently criticized the US Securities and Exchange Commission (SEC) via his official X (formerly Twitter) handle, alleging questionable illegal activities in the Debt Box case.
I've just read over the documents in the Debt Box case and this is absolutely shocking behavior. The SEC went to a judge seeking an emergency order to paralyze several businesses and blatantly misrepresented facts to get it before anyone on the other side could defend themselves.
— David "JoelKatz" Schwartz (@JoelKatz) December 5, 2023
Schwartz expressed his shock at the revelations he uncovered while examining the Debt Box documents.
He highlighted that the top securities regulator obtained an emergency restraining order against the defendants by misrepresenting facts to the courts. This action was taken without allowing the defendants an opportunity to present a proper defense.
Given this breach, Schwartz claimed that the SEC inadvertently paralyzed several crypto businesses with this questionable conduct as funds were seized.
The Debt Box case, which kicked off in July 2023 following an ex parte temporary restraining order (TRO), led to an illegal freeze of the defendants’ assets without a thorough investigation.
According to its court filing with the US Court in the District of Utah, the SEC alleged that Digital Licensing Inc., also known as Debt Box, defrauded investors of $50 million following its sales of unregistered securities, which they termed “node licenses.”
Meanwhile, Schwartz’s online outburst has led to a debate in the crypto and broader financial ecosystem.
Popular crypto legal practitioner John E. Deaton tweeted that the TRO application by the SEC meant Debt Box’s legal
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