The U.S. Securities and Exchange Commission (SEC) has accused the operators of a crypto investment scheme of running a Ponzi-like fraud. The regulator filed a complaint in a Utah district court against Blox Lending, LLC, and its principal, Jason Anderson, alleging they defrauded investors by raising at least US$200 million through a deceptive crypto offering.
The scheme, which ran from November 2021 to August 2023, promised investors crypto assets tied to physical ventures like energy and agriculture. Investors were told that royalties from these projects would be used to reduce the supply of their cryptoassets through a “buy and burn” scheme, supposedly increasing their value. However, the SEC claims the scheme never received any royalty revenue and instead used US$101 million of investors’ funds for the buy-and-burn process, effectively making Ponzi-style payments.
The SEC also settled allegations against Digital Licensing, Inc., and its principals Schad Brannon and Roydon Nelson. Without admitting guilt, they agreed to a final judgment imposing permanent injunctions and ordering over US$1 million in disgorgement, civil penalties, and interest. The allegations against Blox and Anderson remain unproven, and the SEC is seeking similar penalties against them and another company controlled by Anderson.