Cryptocurrencies

Green United loses bid to dismiss $18M crypto fraud case

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Green United LLC has lost its attempt to dismiss a lawsuit brought by the United States Securities and Exchange Commission (SEC), accusing the company of running a fraudulent crypto-mining operation.

The SEC alleges that the firm, led by executives Wright Thurston and Kristoffer Krohn, defrauded investors out of $18 million by selling mining equipment for a non-existent blockchain.

According to the SEC, Green United sold “Green Boxes” and “Green Nodes” that were marketed as miners for the "Green Blockchain" and its associated token, GREEN.

However, Judge Ann Marie McIff Allen, in her Sept. 23 decision, ruled that the defendants failed to challenge the SEC’s claims.

She stated, “The SEC has adequately alleged all necessary elements of a security in the form of an investment contract,” upholding the fraud charges.

The court documents describe how investors believed they were mining GREEN tokens, but in reality, the equipment provided was used for mining Bitcoin (CRYPTO:BTC).

According to the SEC, the blockchain they were supposedly mining on didn’t exist.

Thurston distributed the GREEN tokens to investors at his discretion, leading the court to rule that his actions constituted a "deceptive act in furtherance of the Green Box fraud."

Thurston and Krohn also argued that the SEC lacked the authority to regulate digital assets, claiming Congress had already rejected this oversight.

However, the judge rejected this argument, stating, “The SEC pursues the regulatory goals Congress set for it ninety years ago.”

The lawsuit will now proceed to the next stage in the legal process, which may include further discovery or trial.

Green United is accused of running this scheme between 2018 and 2022, raising millions from unsuspecting investors.

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