Lawyers Michael Welsh and Joseph Watkins, who are known for their opposition to cryptocurrencies, were asked to depart from the U.S. Securities and Exchange Commission (SEC).
After being reprimanded by Robert Shelby, a federal judge in Salt Lake City, for misusing its authority in the well-known DEBT Box case, the regulatory agency faced consequences.
Back in July, the regulatory agency filed a lawsuit against DEBT Box, alleging instances of multi-million dollar fraud. Initially, the agency secured a temporary restraining order against the Utah-based company. However, the defendants later countered by accusing the agency of manipulating certain key facts in the case. The SEC’s evidence presentation was deemed inappropriate; for instance, its claims regarding overseas transfers were solely based on a YouTube video.
The SEC lawyers issued apologies after acknowledging that their agency didn’t meet its own high standards, with SEC enforcement head Gurbir Grewal taking responsibility for this shortcoming.
The judge ultimately refused the SEC’s petition for exemption from penalties because the Securities and Exchange Commission had compromised the fairness of the trial. Consequently, the SEC was obliged to reimburse the law firm’s legal expenses.
According to Bloomberg’s report, using an unnamed source, Welsh and Watkins were reportedly facing termination by the SEC. However, following an unusual decision by the court to penalize the SEC, they chose to resign instead.
The criticism of the SEC’s handling of crypto issues isn’t just the responsibility of a couple of lawyers, according to James “MetaLawMan” Murphy. He argued on the X social media platform that selecting a few individuals as scapegoats doesn’t lead to genuine accountability when the issue is deeply rooted within the organization.
Picture this: A lawyer works for a company that not only tolerates but also shields such behavior… until a judge intervenes. Unfortunately, the SEC’s General Counsel’s office follows the same pattern. I’d prefer to wait until those lawyers are held accountable and resign in shame too.
A recent turn of events could potentially benefit Ripple, as they prepare to submit their reaction to the SEC’s proposed penalty of $2 billion.
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2024-04-22 23:34