The US Securities and Exchange Commission (SEC) has taken legal action against Digital Licensing Inc., a cryptocurrency firm based in Utah, accusing it of orchestrating a fraudulent cryptocurrency scheme worth $50 million. On August 3, the SEC announced that it had secured a Temporary asset freeze, restraining order, and other urgent measures against the company, which operates under the name "DEBT Box."
The enforcement action targets not only Digital Licensing Inc., but also its four principals: Jason Anderson, Jacob Anderson (his brother), Schad Brannon, and Roydon Nelson. Additionally, 13 other defenders are implied in the case. The SEC's allegations revolve around The company's sale of unregistered securities, referred to as "node licenses," since March 2021.
Operating under the premise of being a decentralized eco-friendly blockchain where "cryptocurrency meets commodity," DEBT Box markets "software mining licenses" that require activation prior to initiating the mining process. The company promises daily rewards through various "programs " associated with industries such as real estate, commodities, agriculture, and technology. Despite boasting 30,000 Twitter followers as of August 3rd, DEBT Box's native token, DEBT, has plummeted by 52% following the SEC's actions.
The SEC contends that DEBT Box falsely represented these "nodes" as generators of encrypted tokens via mining, creating an illusion that revenue-generating operations would escalate token value, leading to substantial returns for investors. The agency asserts that the node license is a ruse designed to obscure the fact that the company itself generated the total token supply using blockchain code.
Tracy Combs, Director of the SEC's Salt Lake Regional Office, accused DEBT Box and its principals of deliberately misleading investors regarding nearly every significant aspect of their unregistered securities offering. The SEC asserts that the company falsely claimed to mine c Krypton assets and fabricated information about the business's income, which allegedly contributed to the tokens' increased value. The agency's legal action seeks a permanent injunction, restitution, and civil penalties against DEBT Box.
