Utah Judge Denies Appeal In SEC Lawsuit Against Crypto Mining Promoter

According to Cointelegraph, a federal judge in Utah has rejected an appeal to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) against a promoter involved in an alleged fraudulent crypto mining operation. The scheme reportedly amassed $18 million through deceptive practices. On November 26, Judge Ann Marie McIff Allen denied Kristoffer Krohn’s appeal against her earlier decision from September 23, which allowed the SEC's lawsuit against Green United LLC to proceed. Judge Allen stated that Krohn did not present sufficient grounds for an appeal, emphasizing that there was no substantial disagreement on the legal principles involved in her previous ruling.

Krohn had argued for the dismissal of the lawsuit, claiming that the SEC failed to prove that the "Green Boxes" offered by Green United were investment contracts, as alleged in the regulator's complaint. He further contended that the SEC had misapplied elements of the Howey test, which is used to determine what constitutes a security. However, Judge Allen refuted Krohn's arguments, stating that he selectively used terms from different definitions without providing any legal precedent to support his interpretation. The judge maintained that Krohn's arguments lacked legal foundation and did not warrant an interlocutory appeal.

The SEC's lawsuit, filed in 2023, accuses Green United executives of orchestrating a fraudulent crypto mining scheme. The operation allegedly collected $18 million from investors between April 2018 and December 2022 by selling investments in "Green Boxes" and "Green nodes," which the SEC claims were purported to mine Bitcoin. In addition to Krohn, Green United founder Wright Thurston has also sought to have the lawsuit dismissed, though the outcome of his request remains pending.

标签：crypto SEC CRYPTO IN