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Ripple CTO David Schwartz Criticizes SEC’s ‘Shocking’ Conduct In Debt Box Case – Crypto News

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2 years ago

December 5, 2023

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In a recent X post, Ripple CTO David Schwartz unveiled condemning details about the US Securities and Exchange Commission’s (SEC) questionable conduct in the ongoing Debt Box case. Meanwhile, the crypto industry finds itself at a crossroads as legal battles intensify, with prominent figures like David Schwartz, and John Deaton, among others, exposing what they believe to be a breach of trust.

Ripple CTO Slams SEC’s Misconduct In Debt Box Case

Ripple CTO David Schwartz recently took to social media to express his shock and dismay over the SEC’s actions in the Debt Box case. Notably, he criticized the SEC for seeking an emergency order that paralyzed businesses, accusing the commission of blatantly misrepresenting facts to secure the order before the opposing party could defend itself.

However, this recent allegation follows a federal judge’s reprimand of the SEC’s attorneys for making “materially false” representations to freeze assets in the same case.

Quoting Schwartz’s comments, he stated, “I’ve just read over the documents in the Debt Box case, and this is absolutely shocking behavior.” These revelations bring to light the lengths to which the SEC allegedly went to freeze assets, causing irreparable damage to the cryptocurrency firm.

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Federal Judge Expresses Concerns Over SEC’s Action

The recent post of David Schwartz follows criticism by a federal judge over the SEC’s conduct in the case involving crypto firm Debt Box, highlighting worries about “materially false and misleading representations.” The judge’s disapproval is primarily linked to the SEC’s purported involvement in freezing millions of dollars in assets owned by the crypto company.

Moreover, the court has requested the SEC to provide an explanation, considering potential sanctions for what seems to be a violation of trust. Notably, David Schwartz is not the first individual who has expressed concerns over the SEC’s action.

According to an earlier report by CoinGape, XRP lawyers John Deaton and Bill Morgan have called for congressional action against SEC and Gary Gensler. Deaton highlighted the SEC’s alleged disregard for the law, urging the US House Committee on Financial Services Republicans, particularly Chairman Patrick McHenry, to issue a subpoena.

In addition, Deaton emphasized the urgent need for oversight, stating, “SEC lawyers don’t hesitate to intentionally mislead the Court.” Quoting Deaton, he directed a plea to the Financial Services Committee, urging them to fulfill their role in overseeing the SEC and its Chair Gary Gensler. Attorney Bill Morgan echoed the sentiment, expressing bewilderment over the committee’s reluctance and questioning potential political motives hindering Congress from asserting its authority.

As the crypto industry grapples with legal uncertainties, these revelations underscore the urgent need for transparency and accountability within regulatory bodies, leaving stakeholders questioning the true motivations behind recent SEC actions.

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