05 Jun

The SEC's Salt Lake City office is scheduled to close. The office gained notoriety in the cryptocurrency industry for its unsuccessful lawsuit against DEBT Box. Its employment had significantly decreased, with several departing because of their alleged involvement in the crime.

The SEC will have ten regional branches instead of eleven as a result of the office's closing.

The SEC stated that its Salt Lake City office has the fewest employees in a notice dated June 4. It also just experienced a significant staffing reduction.

SEC Cites "Efficiency" for Closing Salt Lake Office Following Employee Departures

In related news, two attorneys with the SEC who worked out of the Salt Lake office, Michael Welsh and Joseph Watkins, both quit in April.

Their resignations may or may not have contributed to the "significant attrition" that the SEC reported, but that is currently unknown.

The SEC stated that "the agency has no plans to close any other regional offices. Its decision to close the office was based on its budget and organizational efficiency. Based on their current functions and agency mission needs, all current staff will be aligned to existing SEC organizational components."

SEC is fined $1.8 million by a judge in the DEBT Box case

The SEC launched legal action against DEBT Box in July 2023, claiming the business committed a $49 million scam. The agency claims that DEBT Box offered "node licenses" that promised earnings from mining several cryptocurrencies; however, the scheme was allegedly never carried out because these coins were never really mined.

Just last week, the DEBT Box lawsuit against the SEC came to an end, dealing a serious blow to the oversight organization. In addition to dismissing the lawsuit, the judge penalized the SEC more than $1.8 million for using unethical practices. The court's finding that the SEC had deceived the judge in order to obtain an unfair advantage resulted to this sentence.

From now on, the SEC will conduct enforcement actions pertaining to Utah from its Denver office rather than Salt Lake City. This is not a new development; years ago, the SEC moved its examination supervision from Utah to Denver. Therefore, the notice states that firms in Utah won't see any disruptions in regulatory supervision.

June 2024, Cryptoniteuae

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