Judge Rules Against $18M Crypto Fraud Case by Green United
Federal judge dismisses Green United’s attempt to quash the SEC’s lawsuit, setting the stage for a legal battle over the fraudulent mining operation.
Green United LLC’s attempt to dismiss a Securities and Exchange Commission (SEC) lawsuit alleging an $18 million crypto mining fraud has been rejected by a federal judge, allowing the case to proceed to the next phase.
The SEC accuses Green United executives Wright Thurston and Kristoffer Krohn of selling mining equipment for a fictitious blockchain project. The equipment, dubbed "Green Boxes" and "Green Nodes," was marketed as part of the "Green Blockchain," which allegedly never existed. Investors were promised returns through mining a token called "GREEN," but according to the SEC, the machines sold were standard Bitcoin mining devices, not designed for the advertised GREEN tokens.
Judge Ann Marie McIff Allen, presiding over the case, ruled on September 23 that the SEC sufficiently demonstrated the existence of an investment contract, allowing the fraud claims to stand. The SEC’s argument is based on the premise that Green United raised millions through false promises and misled investors about the nature of the hardware they were purchasing.
Thurston and Krohn argued that the SEC lacked authority over the digital assets involved, but Judge Allen rejected this, affirming that the SEC was pursuing regulatory goals set by Congress decades ago, and this case fell within its jurisdiction. The ruling marks a significant step in the SEC’s ongoing crackdown on fraudulent crypto schemes, reinforcing its authority in the digital asset space.
Green United, founded by Thurston and promoted by Krohn, operated from 2018 to 2022 and reportedly raised $18 million during that time. The defendants’ efforts to dismiss the SEC’s claims were rebuffed, and the case will now move forward to discovery or potentially trial.
This development underscores the growing scrutiny of cryptocurrency projects, especially those that offer high returns and promise groundbreaking technology. The SEC’s lawsuit against Green United serves as a stark reminder that not all crypto opportunities are legitimate, and regulatory oversight in the space is intensifying as the digital asset industry grows.
photo source / Blockonome
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