SEC freezes Digital Licensing miner's assets due to $50 million fraud
Date: 2023-08-05 Author: Karina Ziganova Categories: BUSINESS
The US Securities and Exchange Commission (SEC) has temporarily frozen the assets of the cryptocurrency miner Digital Licensing Inc.
The company is accused of organizing a fraudulent scheme for $ 50 million. The scam involved four company executives - Jason Anderson, Jacob Anderson, Shad Brannon and Roydon Nelson, as well as 13 other defendants, whose names were not specified. The SEC says the firm has been selling unregistered securities since March 2021.
The SEC is now seeking permanent injunctions, return of illegal profits, and civil sanctions against Digital Licensing Inc in light of these allegations.
How the DEBT Box platform worked
On its digital platform, DEBT Box positions itself as an environmentally friendly, decentralized blockchain in which “cryptocurrency interacts with goods.” It offers software licenses that require activation before starting mining operations.
The company promised daily rewards through several "projects" that are related to various sectors such as real estate, commodities, agriculture and technology. In total, the platform managed to receive $50 million in Bitcoin (BTC) and Ether (ETH).
“We allege that DEBT Box and its executives lied to investors in virtually every aspect of their unregistered securities offering, including falsely claiming they were mining crypto assets,” said Tracey S. Combs, head of the SEC in Salt Lake City. .
$100 million scam
Earlier this year, another massive $100 million scam was foiled in the United States. A Florida court helped the SEC freeze the assets of cryptocurrency hedge fund BKCoin.
According to the regulator, one of its co-founders, Kevin Kang, raised $100 million from more than 50 investors and used the money for "Ponzi scheme payments." As a result, Kang spent about $3.6 million on payments to other investors, he spent another $371,000 on personal needs.
In total, over the past year, Americans have lost $ 2.57 billion due to fraud with investments in cryptocurrency. And most often it was encountered by residents of the United States from 30 to 49 years old. Typically, they were tricked into linking crypto wallets to a fraudulent liquidity mining app.
