Wednesday, March 29, 2023

Cryptocurrencies: The US SEC announced the fraud of the miners

The indictment indicates that the company offered collateral that did not exist and has no value.

Sec Securities And Exchange Commission.jpg

The United States Securities and Exchange Commission (SEC) remains in charge of cryptocurrency regulation. In this context, the director stated that the software and equipment offered by Green United was part of a “fraudulent scheme” for US$ 18 million, in which what was promised never materialized.

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This stems from a complaint filed last Friday, March 3, by the SEC before a district court in Utah. In it, the regulator claims that the mining company has fraudulently issued securities by selling money in “Green Coins” of US$3,000 and “green nodes”, for example, the Green token in the “Green Blockchain”. The alleged fraud occurred between April 2018 and December 2022.

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This complaint appears in the context that in recent weeks there has been an intermediate regulatory process in the regulation of crypto-currency. This was seen, among other things, in the notice to Paxos by USD Binance and in the refusal to agree to the purchase of Voyager Digital by Binance’s US subsidiary.

What did he report about the fraud?

The SEC’s indictment states that “in fact, the Green Boxes and Green Nodes purchased by the investors did not mine Green. This is because Green, an ERC-20 token, was not a mineable crypto asset—nor did the “green block” promoted by the defendants. It is not.” The complaint also shows that the said signs were not created “until several months after the initial condition and sale of the green bags with the hostages.”

As explained by the SEC, “in order to create the appearance of a successful mining operation, since 2019, Green United periodically distributes green tokens to investment wallets. According to information and opinion, these green deposits are not the result of mining, but simply the result of distribution made under the direction of Thurston . And aside from the representations made at the time, Green had no real value since he wasn’t traded on the secondary market.”

In addition, the regulatory agency is seeking a permanent injunction prohibiting the defendants “from participating in the business, acts, practices and course of business alleged in this case,” and an injunction prohibiting Krohn, the principal developer, and Thurston, the president, from participating. in “any undisclosed collateral offerings, including any crypto-asset securities.”

Add that, all profits made in this manner, SEC.

Nation World News Desk
Nation World News Desk
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