SEC Accused of Overreach in $18M Crypto Fraud Suit

• The SEC has filed a lawsuit against Utah-based crypto-firm Green United for allegedly selling bogus mining equipment worth $18M in return for tokens.
• Investors were promised a 40-50% monthly return on the GREEN tokens and were told that success of their investments was contingent on Green United controlling the “Green Boxes”.
• The SEC is seeking permanent injunctions, disgorgement and civil penalties against Green United and two individuals.

SEC Accuses Utah Crypto Firm of Violating Federal Securities Laws

The Securities and Exchange Commission (SEC) of the United States has filed a lawsuit against Utah-based crypto-firm Green United, accusing it of violating federal securities laws by selling bogus crypto-mining equipment worth $18 million in return for tokens.

Investors Promised High Returns On Tokens

According to the complaint, investors were promised a 40-50% monthly return on the GREEN tokens and were told that success of their investments was contingent on Green United controlling the “Green Boxes” remotely hosted at a data center controlled by them.

No Mining Machines or Blockchain

However, it turned out that these boxes were actually S9 Antminers – Bitcoin mining equipment and there was no such thing as “Green Blockchain”. Moreover, GREEN tokens were created on Ethereum blockchain several months after they bought the mining machines in April 2018.

Funds Used For Operational And Promotional Activities

A significant portion of funds raised was used to fund operational and promotional activities instead of creating any value for investors which ultimately resulted in low token prices – currently $0.004 instead of initial two cents per token which had been promised by company’s founder/promoter.

Reaction From Crypto Community

The crypto community has reacted with both support and criticism towards agency’s ‚regulation by enforcement‘ diktat with some users calling out its alarmist nature while others accused them of overreaching beyond statutory authority demanding Congress to act upon it quickly.

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