The US Securities and Trade Fee has obtained a brief asset freeze towards Utah-based crypto firm Digital Licensing Inc, accusing the agency of perpetrating a $50 million fraudulent crypto scheme.

On Aug. 3 the SEC introduced it had obtained a brief asset freeze, restraining order, and different emergency aid towards Digital Licensing Inc., which was working as “DEBT Field.”

The agency’s 4 principals, Jason Anderson, his brother Jacob Anderson, Schad Brannon, and Roydon Nelsonand, and 13 different defendants have been included within the enforcement motion.

The SEC has alleged the agency was promoting unregistered securities since March 2021, which it referred to as “node licenses.”

Screenshot exhibits DEBT Field’s explainer of how the node license works. Supply: DEBT Field

On its web site, DEBT Field claims to be a decentralized eco-friendly blockchain “the place crypto meets commodities.” It claims to promote “software program mining licenses” which have to be activated earlier than they start mining.

Day by day rewards are promised by way of a variety of “tasks” that look like linked to numerous industries akin to actual property, commodities, agriculture, and know-how.

“Mining” tasks provided on DEBT Field. Supply:

The agency has 30,000 X (Twitter) followers and was nonetheless energetic up till Aug. 3. It has a local token referred to as DEBT which has tanked 52% because the SEC motion.

In its criticism, the SEC mentioned the agency falsely claimed that these “nodes” would generate crypto tokens via mining and that revenue-generating companies would drive up the token values, leading to enormous good points for buyers.

In a press release, the SEC referred to as the node licenses a “sham” meant to obscure the truth that the full provide was created by the corporate utilizing blockchain code.

Tracy Combs, director of the SEC’s Salt Lake Regional Workplace, mentioned:

“We allege that DEBT Field and its principals lied to buyers about just about each materials side of their unregistered providing of securities, together with by falsely stating that they have been engaged in crypto asset mining,”

The defendants additionally allegedly lied concerning the revenues of companies supposedly growing the token values, in response to the SEC.

Associated: Cryptocurrency versus the SEC: A struggle for truthful digital investing

The SEC is looking for everlasting injunctions, return of ill-gotten good points, and civil penalties towards the agency.

Cointelegraph reached out to Digital Licensing Inc. for remark however didn’t obtain a direct response.

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