SEC Halts Utah-Based Company's Crypto Asset Fraud Scheme with Emergency Relief
The Securities and Exchange Commission (SEC) has obtained emergency relief, including a temporary asset freeze and restraining order, against Digital Licensing Inc., also known as "DEBT Box," and its principals, along with 13 other defendants, in connection with a fraudulent scheme to sell unregistered securities called "node licenses." The defendants allegedly raised approximately $50 million and undisclosed amounts of Bitcoin and Ether from hundreds of U.S. investors by falsely claiming that the licenses would generate crypto asset tokens through mining activity. The SEC's complaint alleges that the node licenses were a sham, and the defendants lied about the revenues of businesses driving the token values. The SEC seeks permanent injunctive relief, the return of ill-gotten gains, and civil penalties.