SEC Charges DEBT Box Partners Over Alleged $200 Million Crypto Fraud

The SEC has charged DEBT Box joint venture partners and their principals over an alleged crypto investment fraud that raised at least $200 million from more than 100,000 investors worldwide.

According to the SEC’s October 29 release, the civil lawsuit was filed in Utah on October 28, 2026. Defendants include Blox Lending, LLC, Jason R. Anderson, Digital Licensing, Inc. (DLI), Schad Brannon and Roydon Nelson.

Alleged Revenue Claims

The complaint concerns license agreements sold from November 2021 through August 2023. Investors were told royalties from real-world businesses would fund token purchases and burns, supporting token values and investment redemptions.

The SEC alleges no such project revenue reached DEBT Box. Instead, Anderson and Blox allegedly used over $101 million in investor funds to purchase tokens, including purchases followed by burns, with the purpose and effect of Ponzi payments.

Settlements Await Court Approval

Brannon, Nelson and DLI agreed to proposed settlements without admitting the allegations. Subject to court approval, the judgments would impose penalties and injunctions; Brannon and Nelson would also pay disgorgement and interest and face two-year securities participation restrictions, with an exception for personal-account trading.

The SEC seeks injunctions and penalties against all defendants. The allegations are not a court finding of fraud.

For questions about investment platforms and potential fraud, visit BrokersView Q&A.

Related Reading

• US Regulator Secures Prison Sentence Against Ponzi Scheme Operator Who Fled Overseas
• SEC Launches Retail Fraud Working Group to Strengthen Investor Protection
• CFTC and SEC Fine Netrios, Red Acre $2.5 Million Over Illegal White-Label Trading Services