SEC to Shutter Office Behind Failed DEBT Box Crypto Lawsuit

The Securities and Exchange Commission’s Salt Lake City office – notorious in the crypto world for its failed fraud lawsuit against DEBT Box – will shut down after seeing “significant attrition” among its staff, some of whom were pushed out over the case.

SEC lawyers Michael Welsh and Joseph Watkins resigned in April after a federal judge sanctioned them for committing a “gross abuse of power” in seeking to freeze the assets of Utah-based crypto company DEBT Box on misleading grounds. Just last week the judge dismissed that case and ordered the SEC to pay DEBT Box $1.8 million in legal fees.

“The agency considered its budget and organizational efficiency in deciding to close the office, and it has no plans to close any other regional offices,” said a press release.

The regulator’s Denver office will take over any enforcement jurisdiction, the SEC said.