.
According to the complaint filed by the SEC in the U.S. District Court for the District of Utah, four executives at Digital Licensing, also known as DEBT Box, Jason Anderson, his brother Jacob Anderson, Schad Brannon and Roydon Nelson, engaged in fraud since March 2021. The lawsuit names 13 other defendants who raised approximately $50 million in fiat currencies, bitcoin and ether from U.S. investors.
The regulator alleges that Digital Licensing executives sold unregistered securities, calling them “software mining licenses”. The firm’s founders promoted them on social media as well as at special events. Investors were promised huge profits due to the fact that these licenses allegedly allowed the generation of various cryptoassets through mining, and the company’s efforts stimulated the appreciation of tokens mined in DEBT Box.
The SEC alleges that the so-called licenses were used to conceal the fact that the tokens were already instantly created in DEBT Box using the blockchain. In addition, DEBT Box executives lied to investors about the corporate earnings that determine the value of crypto-assets.
The agency has requested a permanent injunction against Digital Licensing, the return of funds obtained through dishonest means, and the imposition of administrative fines. The court ordered a temporary freeze on the company’s assets and appointed an interim receiver from law firm Holland&Knight LLP to manage DEBT Box’s assets for the benefit of investors.
As a reminder, the SEC recently charged HEX token creator Richard Heart with violating securities laws and breach of investor trust.