TechFlow news, attorneys for the U.S. Securities and Exchange Commission (SEC) apologized to a judge on Thursday, admitting they misrepresented facts used to secure a restraining order and asset freeze against a cryptocurrency company.
In a filing submitted to the U.S. District Court in Utah, SEC lawyers wrote in response to the judge's order that the agency "regrets these orders deeply" and pledged mandatory training for staff involved in the investigation.
The rare rebuke stems from the SEC's July lawsuit against the crypto firm Digital Licensing Inc. (DEBT Box). In the complaint, the SEC alleged the project defrauded investors of nearly $50 million. As part of the litigation, the SEC sought a temporary restraining order and asset seizure, arguing before U.S. District Judge Robert Shelby that the defendants were attempting to move operations overseas to evade regulatory oversight.
In a 27-page response filed Thursday, SEC attorneys acknowledged the agency "fell short," stating the SEC has already identified errors and misjudgments and will take steps to remedy them.
