“We allege that DEBT Box and its principals lied to investors about virtually every material aspect of the offering of unregistered securities, including falsely claiming they were engaged in crypto mining. We have filed this emergency action to protect victims of defendant’s tortious conduct and to prevent further harm.”
The Securities and Exchange Commission has issued a temporary asset freeze, access to Digital Licensing Inc. Obtained a restraining order, and other emergency remedies.
Jason Anderson, his brother Jacob Anderson, Shad Brannon, Lloydon Nelson, and 13 other defendants have sold cryptocurrency securities to hundreds of US investors for approximately $50 million and an unknown amount. It has been sued by the SEC for alleged fraudulent schemes that raised certain funds. of Bitcoin and Ether.
‘Node license’ is a sham, SEC says
According to the SEC, the ongoing scheme will begin in March 2021 and will sell unregistered securities, dubbed “node licenses,” to generate various cryptocurrency tokens through cryptocurrency mining activities.
Investors were told that revenue-generating businesses in various sectors would boost the value of various tokens mined in DEBT boxes, resulting in exorbitant profits for investors.
The SEC has found that the node license is a fake intended to hide the fact that the total supply of each token was instantly created by a DEBT box using code on the blockchain.
Tracy S. Combs, Director of the SEC Salt Lake Regional Office said: “Alleges that DEBT Box and its principals lied to investors about virtually every material aspect of the offering of unregistered securities, including falsely claiming they were engaged in cryptocurrencies.” Asset Mining . We have filed this emergency action to protect victims of defendant’s tort and to prevent further harm. “
DEBT Box calls itself “an innovative decentralized green blockchain technology network of anonymous software operators who collectively build a blockchain ecosystem”. The company says it “offers an opportunity to offset mortgage, car payments, credit card and student loan debt in a single DEBT box,” and its projects include gold, silver, platinum, oil and natural gas. are said to be supported by the goods and assets of , agriculture, real estate, royalty.
According to the DEBT box websitethe DEBT token is the central support and utility token for the DEBT ecosystem, which has a growing list of token projects. Each project has a swap pair with the DEBT token. We use tokennomics that support the economic theory of supply and remittance fees that support the network to curb frequent transactions, so token holders can transfer and transfer for trading and liquidity. Prior to use, it is recommended to exchange the value of project tokens for DEBT tokens, which play a central role on the platform and as more and more token projects enter and mature into the ecosystem. Demand will be created.”
The DEBT token is still worth $4.8, according to coin market capitalizationdespite accusations by the SEC.
