The U.S. SEC acknowledges "misleading" conduct in a previous cryptocurrency case and expresses deep regret for it

ChainCatcher news, according to Fortune, lawyers from the U.S. Securities and Exchange Commission (SEC) apologized to a judge on Thursday for distorting facts when issuing a restraining order and asset freeze against a cryptocurrency company.

In a document submitted to the U.S. District Court for Utah, in response to a judge's order to explain the reasons for the errors, SEC lawyers wrote that the commission "deeply regrets these orders" and promised mandatory training for the staff involved in the investigation. "I fully understand the special responsibilities that the SEC bears in enforcing federal securities laws," wrote Gurbir Grewal, the SEC's enforcement director. "I know that in this case, the department did not meet those standards, and I apologize for that."

ChainCatcher previously reported that in a lawsuit filed this summer, the SEC accused a company named Digital Licensing Inc. of defrauding investors of nearly $50 million by selling unregistered securities called "node licenses." As part of the initial proceedings, the SEC successfully obtained a temporary restraining order and asset seizure through a so-called unilateral application. District Judge Robert Shelby, who approved the SEC's request, stated that he agreed to grant the SEC's request because SEC lawyers indicated that the cryptocurrency company was closing bank accounts to evade U.S. regulators. However, this turned out to be untrue.