{"id":560347,"date":"2023-03-07T04:12:26","date_gmt":"2023-03-07T01:12:26","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-accuses-utah-firm-of-fraudulent-18m-crypto-mining-scheme\/"},"modified":"2023-03-07T04:12:26","modified_gmt":"2023-03-07T01:12:26","slug":"sec-accuses-utah-firm-of-fraudulent-18m-crypto-mining-scheme","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-accuses-utah-firm-of-fraudulent-18m-crypto-mining-scheme\/","title":{"rendered":"# SEC accuses Utah firm of &#8216;fraudulent&#8217; $18M crypto mining scheme"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4ef0367b068\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4ef0367b068\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-accuses-utah-firm-of-fraudulent-18m-crypto-mining-scheme\/#%E2%80%9D_SEC_accuses_Utah_firm_of_%E2%80%98fraudulent_18M_crypto_mining_scheme_%E2%80%9C\" >&#8221; SEC accuses Utah firm of &#8216;fraudulent&#8217; $18M crypto mining scheme &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-accuses-utah-firm-of-fraudulent-18m-crypto-mining-scheme\/#Is_the_SEC_going_after_mining\" >Is the SEC going after mining?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SEC_accuses_Utah_firm_of_%E2%80%98fraudulent_18M_crypto_mining_scheme_%E2%80%9C\"><\/span>&#8221; SEC accuses Utah firm of &#8216;fraudulent&#8217; $18M crypto mining scheme &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDMvZDFmYmE0OGQtZDUxNC00Mzc0LTg3ZDUtMWI2ODBiNGY3Zjc2LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-48054ca8>Software and crypto mining equipment offered by the Utah-based Green United LLC was part of an $18 million &#8220;fraudulent scheme&#8221; that never mined the crypto it said it would, according to allegations by the United States Securities and Exchange Commission (SEC).<\/p>\n<p>The regulator filed a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.courtlistener.com\/docket\/66955136\/1\/securities-and-exchange-commission-v-green-united-llc\/\">complaint<\/a> in a Utah District Court on Mar. 3 against Green United, its founder, Wright Thurston, and a contracted promotor Kristoffer Krohn.<\/p>\n<p>It alleges the company and the two representatives fraudulently offered securities between April 2018 and December 2022 by selling investments in $3,000 \u201cGreen Boxes\u201d and \u201cGreen nodes\u201d purported to mine the GREEN token on the \u201cGreen Blockchain.\u201d<\/p>\n<p>Investors were allegedly told the firm was to develop the Green Blockchain to create a \u201cpublic global decentralized power grid\u201d and the GREEN token would increase in value based on its efforts with returns of up to 50% a month.<\/p>\n<p>However, the SEC claimed the hardware sold didn\u2019t mine GREEN as it was an Ethereum-based ERC-20 token that could not be mined and the Green Blockchain didn\u2019t exist. <\/p>\n<p>It added the GREEN token was created \u201cseveral months\u201d after the first hardware sales to investors and was periodically distributed to \u201ccreate the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>earance of a successful mining operation.\u201d<\/p>\n<p>Instead the real scheme, according to the SEC, was using the funds to buy S9 Antminers \u2014 Bitcoin (BTC) mining rigs \u2014 which were passed off as the Green \u201cboxes\u201d and \u201cnodes\u201d to investors. The firm mined Bitcoin, not GREEN tokens, which the investors \u201cdid not receive.\u201d<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_the_SEC_going_after_mining\"><\/span>Is the SEC going after mining?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Meanwhile, the crypto community on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> has hosed down one interpretation of the SEC complaint, which suggests that the SEC is going after crypto miners arguing that selling miners or offering hosting for them is a securities investment contract. <\/p>\n<p>The take <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/MetaLawMan\/status\/1632825794979397633\">came<\/a> from a Mar. 6 tweet from pseudonymous lawyer \u201cMetaLawMan.\u201d <\/p>\n<p>However, crypto advocate and investment advisor, Timothy Peterson, argued the interpretation was a \u201cbad take\u201d adding the case doesn\u2019t \u201ctarget mining in <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Somewhat of a bad take; the SEC&#8217;s case does not target mining in general, but a specific ASIC that was supposed to mine an ERC-token but instead mined <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoin<\/a> for the ASIC sellers. Alleged fraud. Agree the &#8220;investment contract&#8221; application to this case is a stretch. But the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/SEC?src=hash&amp;ref_src=twsrc%5Etfw\">#SEC<\/a>\u2026 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/KK5cVqFCAi\">https:\/\/t.co\/KK5cVqFCAi<\/a><\/p>\n<p>\u2014 Timothy Peterson, CFA CAIA (@nsquaredcrypto) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/nsquaredcrypto\/status\/1632854399184674817?ref_src=twsrc%5Etfw\">March 6, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201cThe SEC is not saying \u2018all sales of mining equipment is now a security,\u2019\u201d Peterson clarified.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Lawmakers should check the SEC\u2019s wartime consigliere with legislation<\/em><\/strong><\/p>\n<p>Another crypto commentator, Dennis Porter, CEO of the Bitcoin advocacy group the Satoshi Action Fund, tweeted that \u201cthe SEC is not coming after mining\u201d and it \u201cdid not classify hosting as a security\u201d and said Green United\u2019s operation was \u201ca scam disguised as mining.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Please see official documents here explaining what was actually happening. <\/p>\n<p>A scam disguised as mining. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/1pUMk1M5NM\">pic.twitter.com\/1pUMk1M5NM<\/a><\/p>\n<p>\u2014 Dennis Porter (@Dennis_Porter_) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Dennis_Porter_\/status\/1632846710472052737?ref_src=twsrc%5Etfw\">March 6, 2023<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The SEC has asked for a court order to require Thurston, Krohn and Green United to cease operations, seeks civil penalties for securities law violations and repay the $18 million in allegedly ill-gotten gains.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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The regulator&#8230;<\/p>\n","protected":false},"author":1,"featured_media":560348,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2023-03\/d1fba48d-d514-4374-87d5-1b680b4f7f76.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75042,74898,117,71433,55229,71101,44281],"class_list":["post-560347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-mining","tag-sec","tag-business","tag-court","tag-law","tag-scams","tag-utah"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/560347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=560347"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/560347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/560348"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=560347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=560347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=560347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}