According to PANews, the U.S. District Court for the District of Utah, presided over by Judge Ann Marie McIff Allen, has determined that the U.S. Securities and Exchange Commission (SEC) has sufficiently alleged that Green Boxes, a computer hardware product, combined with a custodial agreement, constitutes a security. This investigation is distinct from the assessment of whether the digital assets and their transactions meet the U.S. Supreme Court's test for investment contracts.
Green United LLC was unsuccessful in persuading the federal court to dismiss the SEC's civil fraud lawsuit against it. The company argued that its cryptocurrency mining machines, referred to as 'Boxes,' did not involve securities transactions with its customers. However, the court found the SEC's allegations to be adequate for the case to proceed.
Previously, on September 24, it was reported that Green United failed to dismiss the SEC's $18 million cryptocurrency mining fraud lawsuit. The SEC's case against Green United centers on accusations of fraudulent activities related to the sale and operation of its mining hardware.
