Published on March 18, 2024 22:45 GMT+00:00edited on March 18, 2024 22:49 GMT+00:00

A federal judge ruled on Monday that the Securities and Exchange Commission acted in bad faith and must pay sanctions, including attorneys' fees and costs, stemming from a case it brought against crypto startup DEBT Box. 

Utah U.S. District Court Judge Robert Shelby said the SEC would have to pay legal costs arising from a temporary restraining order imposed on Digital Licensing Inc., doing business as DEBT Box, last year. According to the court order, the judge also denied the SEC's move to dismiss the case without prejudice. The case involved the judge criticizing the SEC's misleading statements and the agency admitting that it had fallen short of expectations. 

Throughout the 80-page order, Judge Shelby criticized the SEC's conduct in getting the temporary restraining order …