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

FILE PHOTO: Signage is seen at the headquarters of the U.S. Securities and Exchange Commission (SEC) in Washington, D.C., U.S., May 12, 2021. REUTERS/Andrew Kelly/File Photo

(Reuters) - A U.S. federal judge said the Securities and Exchange Commission (SEC) had engaged in "gross abuse of the power entrusted to it by Congress" in its dispute with blockchain technology firm Digital Licensing, which does business as DEBT Box.

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