SEC Accuses DEBT Box Partners of $200 Million Crypto Offering Fraud
SEC alleges DEBT Box partners raised at least $200 million from 100,000 investors and used over $101 million for alleged Ponzi payments; three settled.
Summary
In Litigation Release No. 26678 on October 29, 2026, the SEC disclosed its October 28 filing of Securities and Exchange Commission v. Jason R. Anderson, et al., No. 26-civ-01066, in federal court in Salt Lake City. The agency charged Blox Lending, LLC, Anderson, Digital Licensing, Inc. (DLI), Schad Brannon and Roydon Nelson over an alleged DEBT Box fraud. From November 2021 through August 2023, they allegedly raised at least $200 million from more than 100,000 retail investors worldwide through license agreements granting rights to crypto assets supposedly tied to oil, natural gas, agriculture, beverage distribution and real estate. DEBT Box allegedly claimed project royalties would fund token purchases and burns, increasing value and enabling redemptions. The SEC says the projects generated no revenue, Anderson and Blox used over $101 million of investor funds for token purchases and burns that functioned as Ponzi payments, and Brannon, Nelson and DLI invested in or paid third parties, most owing DEBT Box no royalties.
Anderson and Blox face claims under Securities Act Section 17(a), Exchange Act Section 10(b) and Rule 10b-5; DLI, Brannon and Nelson face claims under Sections 17(a)(2) and (3). The SEC seeks injunctions and penalties against all defendants, disgorgement plus interest from all except DLI, and conduct restrictions against Anderson, Brannon and Nelson. It also seeks disgorgement and interest from relief defendant Business Funding Solutions, LLC, Anderson’s company, for funds received without known goods or services. Without admitting the allegations, Brannon, Nelson and DLI consented to judgments pending court approval. Nelson would pay $100,025 disgorgement, $12,942 interest and a $118,225 penalty; Brannon, $85,000, $10,998 and $118,225; DLI, a $591,127 penalty. Brannon and Nelson accepted two-year securities restrictions excluding personal trades. Ken Stalzer and Terry Miller investigated, assisted by Karaz Zaki and supervised by Marc Ricchiute and Nicholas Heinke; Miller will litigate under Gregory Kasper.
Positives
- Brannon, Nelson and DLI consented to final judgments without admitting the SEC’s allegations, potentially resolving the claims against them subject to court approval.
- $1,036,542 in proposed disgorgement, interest and penalties would be imposed collectively on Nelson, Brannon and DLI.
- Two-year securities restrictions would bar Brannon and Nelson from participating in securities transactions other than personal-account purchases or sales.
- Permanent injunctions would prohibit Brannon, Nelson and DLI from future violations of Securities Act Sections 17(a)(2) and (3).
- The SEC seeks disgorgement and prejudgment interest from Business Funding Solutions for investor funds allegedly received without providing known goods or services.
Risks & concerns
- At least $200 million was allegedly raised from more than 100,000 retail investors worldwide between November 2021 and August 2023.
- Over $101 million in investor funds allegedly financed token purchases and burns that the SEC says functioned as Ponzi payments.
- DEBT Box allegedly received no revenue from the real-world projects promoted as supporting token value and investor redemptions.
- Most third-party businesses funded by Brannon, Nelson and DLI allegedly had no obligation to pay royalties to DEBT Box.
- Anderson and Blox face unresolved antifraud claims, while the proposed settlements with Brannon, Nelson and DLI still require court approval.
