SEC Freezes Crypto Firms Assets over Alleged Crypto Fraud
SEC Freezes Utah Crypto Firm Assets, Alleges $50M Fraudulent Scheme Involving 'Node Licenses' and False Profit Promises.
The United States Securities and Exchange Commission (SEC) has frozen the assets of Utah's crypto company Digital Licensing Inc. They are accused of carrying out a $50 million fraudulent crypto scheme.
On Aug. 3, the SEC obtained a temporary asset freeze, restraining order, and other emergency actions against Digital Licensing Inc., also known as "DEBT Box." Four main leaders and 13 others are involved in this legal action.
The SEC has accused the firm of selling unregistered securities called "node licenses" since March 2021. DEBT Box claims to be an eco-friendly blockchain company that sells "software mining licenses."
Daily rewards were promised through various "projects," but the SEC said these claims were false. The company was popular on Twitter and has a native token called DEBT, which lost 52% of its value after the SEC's action.
In its complaint, the SEC stated that the firm lied about generating crypto tokens through mining and falsely promised huge profits. The SEC is now looking for permanent legal actions, the return of illegal gains, and civil penalties against the company.
