SEC Secures Restraining Order Against Firm in $49M Crypto Fraud Scheme

The Securities and Exchange Commission (SEC) has taken action against a Utah-based firm known as "DEBT Box," accusing its founders of defrauding investors in a cryptocurrency scheme valued at over $49 million.

The agency has obtained a temporary restraining order against the company, aiming to put a halt to their illicit activities.

Brothers Jason and Jacob Anderson, along with 15 others, managed to raise substantial sums in bitcoin and ether from hundreds of U.S. investors since March 2021 through their company.

The SEC revealed that they were selling unregistered securities called "node licenses," promising investors that these licenses would generate crypto asset tokens through mining and that various revenue-generating businesses would increase the value of the tokens.

However, the truth was far from these promises.

Investor funds, meant to support the underlying businesses of the node software licenses, were instead misappropriated for personal gain, financing luxury cars, homes, and extravagant vacations for the defendants.

Tracy S. Combs, director of the SEC's Salt Lake Regional Office, stated, "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."

In response, the SEC filed an emergency action to protect the victims and put an end to further harm caused by the defendants' unlawful actions.

To address the situation, the SEC managed to secure a temporary asset freeze and other emergency relief measures.