⚖️The SEC's decision that crypto mining devices from Green United are securities has rocked the crypto community. But, was this a scam or just a case of misunderstanding? 🤔
The SEC has claimed that Green United LLC's crypto mining hardware, "Green Boxes," sold along with hosting agreements, were part of a securities deal. The devices promised high returns, but the SEC now accuses the company of scamming $18 million from hopeful investors.
According to the lawsuit, instead of actually mining digital tokens, Green United allegedly purchased unmined tokens and deposited them into investor accounts to simulate a successful mining operation. The SEC claims the tokens, called “GREEN,” had no actual value and were not traded in any secondary market.
The U.S. District Court for Utah agreed with the SEC's argument that these Green Boxes, combined with hosting agreements, constituted securities. Green United, however, argued that the SEC's accusations are unfounded and that no investor lost money.
What’s next? The SEC’s claims rest on the Howey test, a legal standard that determines whether something qualifies as a security. The final verdict could set a precedent for future cases in the crypto mining world.
