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Tuesday, March 28, 2023

Cryptocurrencies: the US SEC denounced a millionaire fraud of miners

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The accusation points out that the company would have offered securities that did not exist and had no realizable value.

The Securities and Exchange Commission (SEC, for its acronym in English) of the United States remains focused on controlling the cryptocurrencies. Within this framework, the regulator affirmed that the software and equipment offered by Green United they were part of a “fraudulent scheme” by $18 million in which the promised was never undermined.

Thus it arises from the complaint filed last friday March 3 by the SEC before a district court in Utah. In it, the regulator maintains that the mining company offered values ​​fraudulently by means of the sale of investments in “Green Boxes” of US$3,000 and “Green Nodes”supposedly to mine the Green token in the Green Blockchain. The fraud denounced would have taken place between April 2018 and December 2022.

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This complaint appears in the context of the fact that, in recent weeks, the regulatory agency has advanced in the regulation of cryptocurrencies. This was seen, among other things, in the notice to Paxos for Binance USD and in the objection to Voyager Digital purchase agreement by the US subsidiary of Binance.

What did the reported fraud consist of?

The SEC’s indictment states that “in reality, Green Boxes and Green Nodes purchased by investors they did not mine Green. This is because Green, an ERC-20 token, was not a mineable crypto asset and the ‘green blockchain’ touted by the defendants did not exist“. Even, the complaint points out that said token were not created “until several months after the offer and initial sale of Green Boxes to investors”.

As explained by the SEC, “in order to create the appearance of a successful mining operationas of 2019, Green United periodically distributed Green tokens to investors’ wallets. According to information and belief, these Green deposits were not the result of mining, but were simply the result of a distribution carried out under the direction of Thurston. And contrary to representations made at the time, Green had no realizable value, as it was not traded on a secondary market.”.

In addition, the regulatory agency seeks a permanent injunction prohibiting defendants from “participating in the transactions, acts, practices, and courses of business alleged in this lawsuit.”and one court order that prohibits participation crohnmain promoter, already thurstonChairman, in “any unregistered securities offering, including any crypto asset securities offering.”

Added to that, the SEC will seek to return all profits achieved through this method.

Source: Ambito

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