SEC freezes assets of DEBT Box, alleging $50M node license ‘sham’

The United States Securities and Exchange Commission has actually obtained a temporary possession freeze against Utah-based crypto business Digital Licensing Inc, accusing the company of committing a $50 million deceptive crypto scheme.On Aug. 3 the SEC announced it had actually gotten a momentary property freeze, restraining order, and other emergency situation relief versus Digital Licensing Inc., which was operating as “DEBT Box.” The firms 4 principals, Jason Anderson, his bro Jacob Anderson, Schad Brannon, and Roydon Nelsonand, and 13 other defendants were consisted of in the enforcement action. The SEC has declared the firm was selling unregistered securities because March 2021, which it called “node licenses.” Screenshot shows DEBT Boxs explainer of how the node license works. Source: DEBT BoxOn its site, DEBT Box declares to be a decentralized environmentally friendly blockchain “where crypto meets products.” It claims to offer “software mining licenses” which require to be activated prior to they start mining. Daily benefits are assured via a number of “projects” that seem connected to different industries such as realty, commodities, agriculture, and technology. “Mining” projects offered on DEBT Box. Source: thedebtbox.comThe firm has 30,000 X (Twitter) fans and was still active up until Aug. 3. It has a native token called DEBT which has tanked 52% because the SEC action. In its problem, the SEC stated the firm falsely claimed that these “nodes” would produce crypto tokens through mining and that revenue-generating organizations would drive up the token worths, resulting in big gains for investors.We obtained a momentary asset freeze, restraining order, and other emergency situation relief against DEBT Box and its four principals, Jason Anderson, his bro Jacob Anderson, Schad Brannon, and Roydon Nelson in connection with a deceitful scheme to offer crypto asset securities.– U.S. Securities and Exchange Commission (@SECGov) August 3, 2023

In a statement, the SEC called the node certifies a “sham” intended to obscure the truth that the overall supply was created by the business using blockchain code.Tracy Combs, director of the SECs Salt Lake Regional Office, stated:”We declare that DEBT Box and its principals lied to financiers about virtually every product element of their unregistered offering of securities, including by wrongly mentioning that they were engaged in crypto asset mining,”The defendants also allegedly lied about the earnings of businesses supposedly increasing the token worths, according to the SEC.Related: Cryptocurrency versus the SEC: A defend fair digital investingThe SEC is seeking long-term injunctions, return of ill-gotten gains, and civil penalties against the firm.Cointelegraph reached out to Digital Licensing Inc. for remark however did not get an immediate response.Magazine: Deposit threat– What do crypto exchanges truly finish with your money?