Green United’s motion to dismiss the SEC’s $18M fraud case was denied.
The SEC alleges Green United sold fake mining equipment and misled investors.
U.S. federal judge Allen has denied Green United’s motion to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC), accusing the Utah-based company of running an $18 million crypto mining scam. The SEC alleges that Green United misled investors by selling fake cryptocurrency mining equipment and violating federal securities laws.
The SEC’s complaint centers on Green United founder Wright Thurston and promoter Kristoffer Krohn, who allegedly marketed $3,000 “Green Boxes.” These devices were supposed to mine GREEN tokens on the Green Blockchain, promising investors monthly returns of 40% to 50%.
However, according to the SEC, GREEN was not a mineable cryptocurrency. The so-called Green Blockchain never existed. Instead, Thurston created the GREEN tokens on the Ethereum blockchain and distributed them to investors months after selling the equipment.
The SEC also claims that the real purpose of the scheme was to disguise regular Bitcoin mining machines as “Green Boxes.” Although these machines mined Bitcoin, investors never received any Bitcoin rewards, further misleading them about the investment’s nature.
Green United’s Legal Troubles Deepen as SEC Pursues Penalties
This lawsuit is part of the SEC’s broader crackdown on crypto scams, emphasizing that Green United’s actions went beyond just selling mining equipment. The SEC argues that the sale of mining machines, coupled with the unregistered offering of a token, created the expectation of profit derived from the company’s efforts, constituting a securities violation.
The court’s refusal to dismiss the case allows the SEC to pursue permanent injunctions, disgorgement of ill-gotten gains, and civil penalties against Green United, Thurston, and Krohn. Notably, this is not Krohn’s first legal battle with the SEC, as he previously faced allegations related to securities violations in a 2012 real estate investment scheme.
This case underscores the ongoing regulatory scrutiny over misleading crypto investments and fraudulent mining operations, highlighting the risks associated with unverified crypto projects. The SEC’s stance reinforces its commitment to protecting investors from deceptive practices in the evolving digital asset landscape.Highlighted Crypto News TodayBitcoin Price Slumps Back to $63K Amid Increased Volatility