Securities and Exchange Commission
Cryptocurrency, Enforcement

SEC Obtains Emergency Relief to Halt Crypto Asset Fraud Scheme Involving 18 Defendants

The SEC has obtained a temporary asset freeze, restraining order, and other emergency relief against Digital Licensing Inc., doing business as DEBT Box, and 18 other defendants in connection with a fraudulent scheme to sell crypto asset securities to hundreds of U.S. investors that raised approximately $50 million and unspecified amounts of Bitcoin and Ether.

The SEC alleges that the defendants 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. The SEC also alleges that the defendants used the money raised from investors to pay for personal expenses and to make Ponzi payments to earlier investors.

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