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The U.S. Securities and Exchange Commission (SEC) has temporarily frozen the assets of a crypto mining company in Utah called Digital Licensing Inc., accusing them of a fraudulent crypto investment scheme valued at $50 million. On August 3rd, the SEC obtained a restraining order, a freeze on assets, and granted emergency relief versus Digital Licensing Inc., also known by “DEBT Box,” and some connected with the company. 13 defendants were included in the enforcement action, which involved Jason Anderson, his brother Jacob Anderson, Schad Brannon, Roydon Nelson, and others supposedly engaged in illegal activities.
Since March 2021, Digital Licensing Inc. has been offering unregistered securities, classified as “node licenses,” as advertised on their website. The advanced platform combines cryptocurrency and commodities, persuading investors with options such as real estate, commodities, agriculture, and technology, all of which claim potential daily rewards. Still, as alleged by the SEC, Digital Licensing Inc. misguided buyers to trust that these “nodes” could generate digital tokens with mining activity, notifying gains for investors versus a digital token that was cleverly created by implementing blockchain code. What further indicated a likely scam was the fact that these earnings seemed to have been falsely presented from extant businesses related to increasing token values.
The SEC charges Digital Licensing Inc. with selling sham investments and in its position requests permanent court orders, yet asks to recover dismunted funds, too. Penalties, further, might be levied, added the SEC. All of this happened following crypto.news’s initial publication.