SEC freezes assets of DEBT Box, alleging $50M node license ‘sham’
The United States Securities and Exchange Commission has obtained a temporary asset freeze against Utah-based crypto company Digital Licensing Inc, accusing the firm of perpetrating a $50 million fraudulent crypto scheme.
On Aug. 3 the SEC announced it had obtained a temporary asset freeze, restraining order, and other emergency relief against Digital Licensing Inc., which was operating as “DEBT Box.”
The firm’s four principals, Jason Anderson, his brother Jacob Anderson, Schad Brannon, and Roydon Nelsonand, and 13 other defendants were included in the enforcement action.
The SEC has alleged the firm was selling unregistered securities since March 2021, which it called “node licenses.”
On its website, DEBT Box claims to be a decentralized eco-friendly blockchain “where crypto meets commodities.” It claims to sell “software mining licenses” which need to be activated before they begin mining.
Daily rewards are promised via a number of “projects” that appear to be linked to various industries such as real estate, commodities, agriculture, and technology.
The firm has 30,000 X (Twitter) followers and was still active up until Aug. 3. It has a native token called DEBT which has tanked 52% since the SEC action.
In its complaint, the SEC said the firm falsely claimed that these “nodes” would generate crypto tokens through mining and that revenue-generating businesses would drive up the token values, resulting in huge gains for investors.
We obtained a temporary asset freeze, restraining order, and other emergency relief against DEBT Box and its four principals, Jason Anderson, his brother Jacob Anderson, Schad Brannon, and Roydon Nelson in connection with a fraudulent scheme to sell crypto asset securities.
— U.S. Securities and Exchange Commission (@SECGov) August 3, 2023
In a statement, the SEC called the node licenses a “sham” intended to obscure the fact that the total supply was created by the company using blockchain code.
Tracy Combs, director of the SEC’s Salt Lake Regional Office, said:
“We allege that DEBT Box and its principals 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 defendants also allegedly lied about the revenues of businesses supposedly increasing the token values, according to the SEC.
Related: Cryptocurrency versus the SEC: A fight for fair digital investing
The SEC is seeking permanent injunctions, return of ill-gotten gains, and civil penalties against the firm.
Cointelegraph reached out to Digital Licensing Inc. for comment but did not receive an immediate response.
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An Arizona woman was sentenced to 8.5 years for aiding DPRK hackers in infiltrating over 300 US crypto and tech firms, generating $17 million of illicit gains.
Sir Keir Starmer is under increasing pressure to recognise a Palestinian state, with MPs signing a mass cross-party letter demanding he take the step.
The letter is being organised by the Labour backbencher Sarah Champion, who also sits as the International Development Committee Chair.
Politics Live: Starmer to have ’emergency’ Gaza call with France and Germany
They write: “British recognition of Palestine would be particularly powerful given its role as the author of the Balfour Declaration and the former Mandatory Power in Palestine”.
“Since 1980 we have backed a two-state solution. Such a recognition would give that position substance as well as living up to a historic responsibility we have to the people under that Mandate.”
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‘Many more deaths unless Israelis allow food in’
Earlier this month, nearly 60 Labour MPs called on David Lammy and the Foreign Office to immediately recognise Palestine as a state in a private letter, but this new call shows how dissatisfied many still are with the government’s refusal to change its stance on the issue.
Late last night Number 10 released a statement on Gaza calling the situation “unspeakable and indefensible,” but a growing number of Labour backbenchers fear it’s not enough.
Read more:
British surgeon claims IDF shooting Gazans in specific areas
France to become first G7 nation to recognise Palestine as a state
Dozens of MPs call for UK to recognise Palestine as a state
In light of a tweet by the French President Emmanuel Macron also sent last night declaring France would recognise a Palestinian state in September at a UN conference, a number of MPs now say Number 10’s current position is untenable.
“They had said they wanted to be in lockstep with allies, but this means that position won’t hold,” said one Labour MP.
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Emily Thornberry has told Sophy Ridge that it’s “insulting” that the Israeli government rejected a statement calling for a ceasefire.
Peter Kyle, the technology secretary, this morning defended the government’s resistance to calls for immediate UK recognition of a Palestinian state.
“We want Palestinian statehood. We desire it, and we want to make sure the circumstances can exist where that kind of long-term political solution can have the space to evolve and make sure that it can become a permanent circumstance that can bring peace to the entire region,” he told Sky News.
“But right now, today, we’ve got to focus on what will ease the suffering, and it is extreme, unwarranted suffering in Gaza that has to be the priority for us today.”
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Aid waiting to be distributed in Gaza
An emergency call with Germany and France is scheduled for today to discuss what Sir Keir described as a “human catastrophe” which has “reached new depths”.
The Foreign Office have maintained they are committed to recognising a Palestinian state but have expressed a willingness to do so only when it will have the “most impact in support of a peace process”.
They say: “We continue to provide lifesaving aid to support Palestinians in Gaza and the West Bank, and to work closely in support of the Palestinian Authority.”
A Downing Street spokesperson also confirmed their position on Palestinian statehood remains unchanged.
Regulatory clarity is opening the door for banks, asset managers, and crypto firms to roll out new stablecoin products.
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