SEC v Debt Box: SEC Files Motion to Dismiss to Avoid Sanctions
On Tuesday, January 30, the SEC archived a motion to dismiss in SEC v Debt Box. In filing the Motion to Dismiss, the SEC argued that the sanctions are inappropriate and unnecessary. The SEC also outlined corrective measures to prevent further misrepresentations. The proposed corrective measures included,
"Mandatory training for all Compliance Division staff involved in investigations and litigation on the importance of candor and the duty to promptly correct any inaccuracies, as well as the unique conditions that apply when seeking emergency assistance."
The case grabbed cryptocurrency headlines in December 2023. In December, Judge Robert Shelby tidy to the SEC to show cause why the court should not sanction SEC attorneys for making false and misleading representations to the court.
The SEC filed charges against Debt Box in July 2023, alleging that the company sold unregistered securities.
Amicus Curiae attorney John E. Deaton responded to the court order in December saying:
โThe SEC never lets the truth get in the way of its lies. The case was much bigger than XRP. But I bought more XRP AFTER the lawsuit because I knew we would win. Plus, it was like betting on myself and betting that the judge would follow the law.โ
Ripple Co-Founder Chris Larsen Hacked XRP Below $0.50 Level
On Wednesday, XRP Headlines became victims of fake news. Reports of hackers who accessed 213 million XRP through Ripple wallets sent XRP to a low of $0.4861.
Chris Larsen responded to the reports by stating that hackers gained unauthorized access to his personal wallets.
Ripple CEO Brad Garlinghouse had this to say about the inaccurate reports:
โGiven some irresponsible speculation and reporting, I want to reiterate that NO wallet managed by Ripple was compromised. Final point".
During the current week, XRP is down 2.96% to $0.5086 from Monday to Saturday. There was not SEC case against Ripple-Related updates to influence investor sentiment during the week. The SEC and Ripple await a ruling from Judge Analisa Torres on the SEC Motion to compel.
