SEC froze assets of Digital Licensing, also known as DEBT Box.

The mining company Digital Licensing, also known as DEBT Box, was accused of fraudulently soliciting $50 million in cash, as well as undisclosed amounts in Bitcoin and Ethereum. According to SEC.

The agency acted swiftly to freeze the firm’s assets and took action against four of its executives and 13 other defendants.

According to the SEC, from March 2021, Jason Anderson, his brother Jacob, Shad Brennan and Roydon Nelson offered investors unregistered securities, falsely claiming they were engaged in cryptocurrency mining.

The proceeds were spent on luxury cars, real estate, and entertainment.

In total, charges of selling unregistered securities have been brought against 18 defendants. Representatives of DEBT Box are also charged with violations of anti-fraud provisions. Additional defendants face counts of unregistered broker-dealer activity.

The SEC seeks a permanent injunction, the return of ill-gotten gains and civil penalties.

DEBT Box was appointed a temporary receiver, including to manage the company’s assets on behalf of investors.

Back in July, Marathon shareholders filed a lawsuit against CEO Fred Thiel and nine other top executives for the misappropriation of company assets for personal use.