Coinbase CLO Criticizes SEC Over DEBT Box Case
Paul Grewal, Coinbase’s Chief Legal Officer (CLO), has joined others in condemning the U.S. Securities and Exchange Commission (SEC) for its handling of the recent DEBT Box case. Grewal criticized the SEC’s silence after admitting to misrepresenting evidence, which resulted in a freeze on DEBT Box’s assets.
SEC’s Lack of Accountability
Grewal expressed his disappointment with the SEC, stating that they knew the Temporary Restraining Order (TRO) against DEBT Box was tainted by the SEC’s misinterpretations. He criticized the SEC for not immediately withdrawing its order after admitting to deceiving the court, highlighting a lack of accountability within the regulatory body.
Defiance of SEC’s Order
Coinbase decided to defy the SEC’s order to freeze DEBT Box-related assets. Grewal stated that Coinbase unfroze the assets while the SEC remained silent, correcting the injustice. He emphasized that dismissal without prejudice and minimal training were insufficient remedies for the situation.
SEC Faces Backlash from U.S. Senators
A group of Republican senators, including J.D. Vance and Cynthia Lummis, raised similar concerns about the SEC’s enforcement practices. They wrote a letter to SEC Chair Gary Gensler expressing deep-seated concerns about the agency’s unethical and unprofessional behavior.
Mishandling of Evidence
The heart of the issue lies in the SEC’s mishandling of evidence, which led to the freezing of DEBT Box’s assets on Coinbase. Despite dismissing the case later on, Grewal remained skeptical of the SEC’s actions and emphasized the need for greater accountability and transparency in regulatory proceedings.
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