US judge criticizes SEC for 'gross abuse' of power in dispute with blockchain firm

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The regulator had sued the blockchain company in July last year, accusing it of defrauding investors of nearly $50 million. Chief District Judge Robert...

FILE PHOTO: Signage is seen at the headquarters of the U.S. Securities and Exchange Commission in Washington, D.C.

Chief District Judge Robert Shelby said on Monday the SEC acted in "bad faith" and was "deliberately perpetuating falsehoods" in its efforts to obtain an asset freeze and a temporary restraining order against the company. The SEC is often accused of adopting a heavy-handed approach towards crypto firms, and its chair Gary Gensler is a fierce skeptic of the industry.

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