From Fortune:

SEC attorneys have asked a federal judge to dismiss the agency’s lawsuit against crypto firm DEBT Box without prejudice to avoid possible disciplinary actions. The lawsuit, led by SEC Chair Gary Gensler, had alleged that DEBT Box had defrauded investors with unregistered securities but the judge found the claims to be materially false. The SEC later admitted missteps in the case and promised to conduct mandatory training for staff members involved. The agency’s mistake in filing the suit resulted in enormous damage, suppressing evidence and causing the judge to question the “materially false and misleading representations,” freezing millions of dollars in assets. The SEC seeks to to avoid any sanctions and argue that the lawyers did not engage in “willful misconduct,” dismissing claims of “enormous damage.”



Read more: SEC asks to dismiss contested crypto case in which agency faces sanctions over ‘materially false’ statements