The SEC has taken strong action against 18 defendants connected to Digital Licensing Inc., a cryptocurrency mining company based in Utah, amidst the DEBT Box scandal.
The SEC has made an emergency move by freezing the assets and securing a restraining order against Digital Licensing Inc., known as DEBT Box, and its four main leaders, along with 13 others involved. They are accused of running a fraudulent scheme that deceived hundreds of U.S. investors, raising around $50 million by selling unregistered securities called “node licenses.”
SEC Unveils Deceptive Cryptocurrency Scheme by DEBT Box Defendants
DEBT Box and its four main leaders, along with 13 others, are accused by the SEC of deceiving investors with fraudulent “node licenses” promising cryptocurrency mining and potential value growth. However, investigations have revealed that the licenses were simply generating cryptocurrency instantly through blockchain code.
Tracy S. Combs, Director of the SEC’s Salt Lake Regional Office, condemned the defendants’ false claims about crypto asset mining and their misuse of raised funds for personal luxuries, such as luxury vehicles, homes, and extravagant vacations.
DEBT Box allegedly spread its fraudulent scheme through online videos, social media posts, and events, enticing investors with promises of significant crypto mining gains. However, the SEC has exposed these so-called “node licenses” as deceptive fronts.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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