Published on september 25, 2024, 12:38 am
Image source: Fox News
```json [ { "TLDR": "Two individuals, Wright Thurston and Kristoffer Krohn, are accused by the SEC of running a fraudulent cryptocurrency mining scheme through their company Green United LLC. They allegedly sold mining equipment for a non-existent blockchain, amassing $18 million. The court denied their motion to dismiss the SEC's claims, stating they met the criteria for a security investment contract. The defendants' challenge against SEC jurisdiction over digital assets was rejected. This case highlights the importance of caution in dealing with cryptocurrency investments amidst evolving regulatory environments." } ] ```
The recent news reveals that two individuals, Wright Thurston and Kristoffer Krohn, are facing allegations from the United States Securities and Exchange Commission (SEC) for orchestrating a deceitful cryptocurrency mining scheme. Operating under the entity Green United LLC, they purportedly duped investors by selling mining equipment designed for a blockchain that did not actually exist.
The SEC accused Thurston and Krohn of duping investors through the sale of “Green Boxes” and “Green nodes” as mining tools for a supposed GREEN token on the non-existent “Green Blockchain.” This alleged fraudulent operation amassed a staggering $18 million from unsuspecting investors.
In a decision rendered on September 23rd, Judge Ann Marie McIff Allen denied the defendants’ motion to dismiss the SEC’s claims. Judge Allen supported the SEC’s argument by affirming that all necessary elements for a security investment contract had been adequately outlined.
Furthermore, it was disclosed that the hardware sold by Green United was in fact Bitcoin (BTC) mining rigs rather than devices geared towards mining GREEN tokens as advertised. Reports suggest that investors received no Bitcoin yields from Green United’s activities despite investing in the scheme.
Thurston and Krohn attempted to challenge the jurisdiction of the SEC over digital assets, contending that Congressional authority had previously ruled against such interventions. However, this argument was rebuffed by Judge Allen during proceedings.
As the lawsuit progresses through legal procedures, including discovery or trial stages, it remains to be seen how this case will unfold. The developments underscore the need for vigilance within the cryptocurrency sphere to safeguard against fraudulent schemes like those allegedly perpetrated by Green United LLC executives.
In addition to this case, other significant legal rulings have recently impacted the cryptocurrency landscape, highlighting the evolving regulatory environment governing digital assets globally. It serves as a reminder for investors and participants in cryptocurrencies to exercise caution and due diligence when engaging with crypto-related ventures.
Original article posted by Fox News
