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The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/sec-freezes-assets-of-utah-based-debt-box-in-a-50-million-crypto-fraud-case-involving-bitcoin-and-ether/">SEC Freezes Assets of Utah-Based DEBT Box in a $50 Million Crypto Fraud Case Involving Bitcoin and Ether</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
In a significant development, the Securities and Exchange Commission (SEC) has <a href="https://www.sec.gov/news/press-release/2023-146" rel="noopener noreferrer nofollow">announced</a> that it has obtained a temporary asset freeze and restraining order against Digital Licensing Inc., a Draper, Utah-based entity operating under the name “DEBT Box.” 
<h2 id="sec-takes-action-against-18-defendants" data-name="sec-takes-action-against-18-defendants" class="wp-block-heading">SEC Takes Action Against 18 Defendants</h2> 
SEC) has imposed a temporary asset freeze, restraining order, and other emergency measures against Digital Licensing Inc., a Utah-based firm operating as “DEBT Box.” 
The SEC’s action also extends to the company’s four main executives, Jason Anderson, Jacob Anderson, Schad Brannon, and Roydon Nelson, as well as 13 additional defendants. This action is in response to an alleged fraudulent scheme involving the sale of crypto asset securities to numerous U.S. investors, raising an estimated $50 million, along with undisclosed amounts of Bitcoin and Ether. 
According to the SEC’s complaint, which was unveiled yesterday in the U.S. District Court for the District of Utah, the defendants have been charged with an ongoing scheme that commenced in March 2021. The scheme involved the sale of unregistered securities, referred to as “node licenses.” 
The defendants allegedly used hundreds of online videos, social media posts, and investor events to convince investors that these node licenses would generate various crypto asset tokens through crypto mining activities. They also claimed that businesses in diverse sectors would drive the value of the various tokens mined by DEBT Box, leading to substantial profits for investors. 
However, the SEC alleges that these node licenses were a facade designed to mask the fact that DEBT Box instantaneously created the total supply of each token using code on a blockchain. 
<h2 id="debt-box-lied-to-investors" data-name="debt-box-lied-to-investors" class="wp-block-heading">DEBT Box Lied To Investors</h2> 
The SEC’s complaint also accuses DEBT Box and its principals, including James Franklin, Western Oil Exploration Company Inc., and Ryan Bowen, of deceiving investors about the revenues of the businesses allegedly boosting the value of the tokens. The complaint calls for permanent injunctions, the return of supposedly ill-gotten gains, and civil penalties. 
On July 28, 2023, U.S. District Judge for the District of Utah, the Honorable Judge Robert J. Shelby, issued an order that included a temporary restraining order, asset freeze, and other measures. Judge Shelby also appointed Josias N. Dewey from the law firm Holland &amp; Knight LLP as a temporary receiver for DEBT Box. Dewey’s role includes, among other responsibilities, gathering assets for the benefit of investors. 
Tracy S. Combs, Director of the SEC’s Salt Lake Regional Office, said, 
<blockquote class="wp-block-quote"> 
 “We allege that DEBT Box and its principals lied to investors about virtually every material aspect of their unregistered offering of securities, including by falsely stating that they were engaged in crypto asset mining. We filed this emergency action to protect the victims of the defendants’ unlawful actions and stop further harm.” 
</blockquote>

SEC Freezes Assets of Utah-Based DEBT Box in a $50 Million Crypto Fraud Case Involving Bitcoin and Ether

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