The SEC sued a firm over its crypto scheme.
The SEC continues to increase its pressure on the cryptocurrency industry. However, the institution filed a lawsuit against another company.
SEC sues another firm
The SEC has accused a Utah firm called “DEBT Box”, its directors and 15 others, of defrauding at least $49 million by collecting Bitcoin and Ethereum from hundreds of US investors. The SEC stated that the business is selling unregistered securities and is telling investors that they will generate crypto asset tokens through crypto mining activity and increase the value of these tokens.
However, according to the SEC, the investor funds raised were used by the company’s executives for personal gains rather than supporting core businesses, including luxury cars, homes, and “luxury” vacations.
“We allege that DEBT Box and its principals have lied to investors about nearly every material aspect of their unregistered securities offering, including falsely stating that they are engaged in crypto-asset mining,” said Tracy S. Combs, director of the Salt Lake branch.
