The Securities and Change Fee (SEC) has issued a short lived restraining order in opposition to a Utah-based firm, DEBT Field, accusing the agency and its principals of conning traders out of roughly $49 million via a crypto scheme.
The Anderson brothers, Jason and Jacob, and 15 others allegedly orchestrated an intensive monetary operation in March 2021 that raised important funds from US traders in Bitcoin (BTC) and Ethereum (ETH).
We obtained a short lived asset freeze, restraining order, and different emergency reduction in opposition to DEBT Field and its 4 principals, Jason Anderson, his brother Jacob Anderson, Schad Brannon, and Roydon Nelson in reference to a fraudulent scheme to promote crypto asset securities.
— U.S. Securities and Change Fee (@SECGov) August 3, 2023
The group allegedly marketed and offered “node licenses,” unregistered securities supposedly designed to supply crypto asset tokens by way of crypto mining actions.
They reassured traders that varied revenue-generating companies throughout a number of sectors would drive these tokens’ values.
Based on the narrative spun by the accused, these firms would mine and improve the worth of the assorted tokens that DEBT Field dealt with.
Nevertheless, the SEC now claims that the funds collected from the gross sales of those node software program licenses weren’t used as promised. As a substitute, they purportedly served to finance a lavish life-style for the defendants, together with purchases of luxurious vehicles, homes, and indulgent holidays.
The director of the SEC’s Salt Lake Regional Workplace, Tracy S. Combs, acknowledged,
“We allege that DEBT Field and its principals deceived traders on nearly each crucial side of their unregistered securities providing. This included falsified claims of their involvement in crypto asset mining. We took this emergency motion to safeguard the victims of the defendants’ unlawful actions and forestall additional harm.”
Along with the restraining order, the SEC has secured a short lived asset freeze and different emergency reduction to inhibit additional illicit actions.
The defendants have been accused of promoting unregistered securities, together with cryptocurrency belongings like BLGD and DEBT.
The company has been cracking down on crypto and has labeled some digital belongings as securities. They just lately labeled HEX as a safety after accusations that its founder offered unregistered securities.