US SEC Takes Emergency Action Against DEBT Box and Principals
The US Securities and Exchange Commission (SEC) has taken emergency action against Digital Licensing Inc., also known as DEBT Box, and four of the company’s principals. The SEC obtained a temporary asset freeze, restraining order, and other relief against the Utah-based entity and its key individuals.
- The SEC alleges that DEBT Box and its principals deceived investors about their unregistered offering of securities, including falsely claiming involvement in crypto asset mining.
- The defendants sold unregistered securities called “node licenses” to unsuspecting victims, promising that they would mine crypto and increase in value.
- The scheme raised approximately $50 million and an undisclosed amount of Bitcoin and Ether.
- The SEC charges the defendants with engaging in unregistered securities offerings and violations of antifraud provisions.
- The SEC seeks permanent injunctive relief, the return of ill-gotten gains, and civil penalties.
Tracy S. Combs, Director of the SEC’s Salt Lake Regional Office, stated that the emergency action was necessary to protect victims and prevent further harm. The SEC’s crackdown on crypto fraud continues, with this case highlighting the agency’s commitment to pursuing individuals and entities involved in fraudulent activities within the crypto industry.
Hot Take:
The SEC’s emergency action against DEBT Box and its principals demonstrates the agency’s dedication to combating crypto fraud and protecting investors. With the increasing popularity of cryptocurrencies, it is crucial for regulators to take swift action against fraudulent schemes, ensuring the integrity of the market and holding wrongdoers accountable.
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