Coinbase Chief Legal Officer Paul Grewal has criticized the US Securities and Exchange Commission (SEC) for its lawsuit against DEBT Box. The SEC's misrepresentation of the facts led to the freezing of DEBT Box's assets.
Grewal joined other dissenters of the SEC's action and was extremely negative about the agency's lack of action following the discovery of the fraud, CoinGape reported.
Paul Grewal published a post stating that the decision against DEBT Box was due to "misinterpretations" by the SEC.
He is outraged that "instead of immediately withdrawing its order after the court recognized the deception, the SEC remained silent." This confirms the lack of accountability within the agency.
Loading...
To demonstrate its disagreement with the SEC's behavior, Coinbase decided to resist the SEC's request to freeze assets related to the DEBT Box. Paul Grewal stated, "Rather than perpetuate this injustice, we will not comply until they explain why we should." According to him, the cryptocurrency exchange corrected the mistake by unfreezing the assets while the SEC remained silent.
Grewal highlights the inadequacy of the SEC's response to its policy failure. In response to mounting pressure, the SEC announced broader corrective actions to prevent similar incidents in the future.
The court found that the SEC's misstatements and misrepresentations that led to the false charges against Digital Licensing Inc. (DEBT Box) were erroneous and unreasonable. The SEC's mistakes were sharply criticized by Judge Robert Shelby.
Republican Senators, notably J.D. Vance and Cynthia Lummis, also condemned the SEC's actions. They wrote a letter to SEC Chairman Gary Gensler, expressing deep concern about the agency's enforcement practices. Commenting on the seriousness of the situation, the Senators said that "it is unconscionable for a federal agency to act in such an unethical and unprofessional manner."
The SEC's misrepresentation of the facts led to the freezing of DEBT Box's assets on Coinbase. Despite the SEC's subsequent decision to dismiss the case, Grewal remains skeptical of the agency's actions and stresses the need for more accountability and transparency in regulatory proceedings.
Read also: Bitcoin mining fails to cover market demand for Bitcoin ETFs
