A U.S. federal judge has dismissed the Securities and Exchange Commission's (SEC) case against the cryptocurrency company Debt Box, ordering the SEC to pay $1.8 million in legal fees. The case was dismissed without prejudice by the U.S. District Court for the District of Utah, allowing the SEC the opportunity to refile. The judge, Robert J. Shelby, cited the SEC's bad faith conduct, including false statements and misrepresentations, as reasons for the dismissal. The SEC had initially accused Debt Box of a $50 million cryptocurrency fraud in August 2023 and sought to freeze its assets. This ruling marks a significant setback for the SEC and a notable victory for Debt Box and the broader cryptocurrency industry. The fine will be paid using taxpayer money, and the ruling is seen as a blow to SEC Chairman Gary Gensler's enforcement regime.