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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Securities Attorney at Sallah Astarita & Cox | 212-509-6544 | mja@sallahlaw.com | Website | + posts

Mark Astarita is a nationally recognized securities attorney, who represents investors, financial professionals and firms in securities litigation, arbitration and regulatory matters, including SEC and FINRA investigations and enforcement proceedings.

He is a partner in the national securities law firm Sallah Astarita & Cox, LLC, and the founder of The Securities Law Home Page - SECLaw.com, which was one of the first legal topic sites on the Internet. It went online in 1995 and is updated daily with news, commentary and securities law related links.

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