SEC Freezes Assets in $50 Million Crypto Fraud Case

• The SEC has obtained a temporary asset freeze and restraining order against Digital Licensing Inc., a Draper, Utah-based entity operating under the name “DEBT Box.”
• The SEC’s complaint alleges that the defendants have been charged with an ongoing scheme that commenced in March 2021 involving the sale of unregistered securities, referred to as “node licenses.”
• The SEC accuses DEBT Box and its principals of deceiving investors into believing they would generate substantial profits through crypto mining activities.

SEC Freezes Assets of Utah-Based DEBT Box for $50 Million Crypto Fraud

Alleged Scheme Involving Unregistered Securities

The Securities and Exchange Commission (SEC) has announced that it has obtained a temporary asset freeze and restraining order against Digital Licensing Inc., a Draper, Utah-based entity operating under the name “DEBT Box.” This action is in response to an alleged fraudulent scheme involving the sale of crypto asset securities to numerous U.S. investors, raising an estimated $50 million, along with undisclosed amounts of Bitcoin and Ether. According to the SEC’s complaint, which was unveiled yesterday in the U.S. District Court for the District of Utah, the defendants have been charged with an ongoing scheme that commenced in March 2021 involving the sale of unregistered securities, referred to as “node licenses.”

Defendants Used Deceptive Tactics To Obtain Funds

The defendants allegedly used hundreds of online videos, social media posts, and investor events to convince investors that these node licenses would generate various crypto asset tokens through crypto mining activities. They also claimed that businesses in diverse sectors would drive the value of the various tokens mined by DEBT Box, leading to substantial profits for investors. However, the SEC alleges that these node licenses were a facade designed to mask the fact that DEBT Box instantaneously created the total supply of each token using code on a blockchain.

SEC Imposes Temporary Asset Freeze & Restraining Order

The SEC’s action extends to company’s four main executives — Jason Anderson, Jacob Anderson, Schad Brannon and Roydon Nelson — as well as 13 additional defendants involved in this case . In addition to obtaining a temporary asset freeze and restraining order against them all ,the commission is seeking permanent injunctions , disgorgement plus interest earned by these individuals ,and civil penalties from each defendant .

Conclusion

This example shows how important it is for investors not only be aware but vigilant when dealing with any investment opportunity or product regardless if it involves cryptocurrency or not . It is essential for investors research thoroughly before making any commitments .