According to Deep Tide TechFlow news on November 27, a federal judge in Utah, Ann Marie McIff Allen, rejected the appeal request from Green United promoter Kristoffer Krohn regarding her September 23 ruling, which allowed the U.S. Securities and Exchange Commission (SEC) to sue Green United LLC, stating that Krohn did not provide grounds for the appeal.
In the debate over the dismissal of the lawsuit, Krohn argued that the SEC failed to prove that the Green Boxes offered by Green United were investment contracts, which the regulator claimed in its complaint. He also claimed that the SEC confused elements in the Howey test that defines securities. However, Judge Allen stated that Krohn's argument was erroneous, accusing him of selectively using terms from two different definitions and that he 'failed to provide any legal support to demonstrate that any court adopted the definitions he described.'
In 2023, the SEC charged executives of Green United with operating a fraudulent cryptocurrency mining scheme that defrauded investors of $18 million between April 2018 and December 2022 through the sale of Green Boxes and Green Boxes investment products.