- SEC suspected mining firm Digital Licencing of defrauding investors.
- The company’s executives may have embezzled about $50 million, the regulator said.
- SEC intends to ban Digital Licensing and fine the firm’s managers.
The U.S. Securities and Exchange Commission (SEC) has frozen the assets of Digital Licensing Inc. a firm allegedly involved in a fraud scheme. An emergency restraining order was issued against a company doing business as DEBT Box.
The regulator filed charges against four Digital Licensing executives-Jason Anderson, Jacob Anderson, Shad Brannon, Roydon Nelson-as well as 13 other defendants. The SEC suspects them of creating a $50 million fraudulent scheme. In addition, the case involves “an unspecified amount of BTC and ETH.”
“We allege that DEBT Box and its executives lied to investors in virtually every material respect. They were not mining cryptoassets,” Tracy C stated. Combs, director of the SEC’s regional division.
Using social media and events, the defendants convinced investors that their investments in mining would yield profits. However, all licenses and equipment turned out to be fictitious.
“DEBT Box managers misappropriated funds raised, bought luxury cars and homes, and spent money on vacations,” the report said.
SEC demanded that Digital Licensing return funds to investors. The regulator intends to ban the company entirely and impose civil penalties on management.
The SEC previously charged HEX’s founder with an unregistered securities offering. According to the Commission, project founder Richard Hurt spent investors’ money on jewelry, expensive watches and cars. The head of the U.S. Securities and Exchange Commission is concerned about “fraud and manipulation” in the crypto-industry.
The head of the SEC is concerned about “fraud and manipulation” in the crypto-industry.