Diaz Reus Partner Ishmael Green was recently interviewed regarding his opinions on the Sec v. Green United cryptocurrency mining hardware matter and why in this particular instance the mining hardware coupled with certain written agreements constituted an investment contract. In short, nothing to worry about though, the SEC isn’t coming after your BTC mining rigs!
Decrypt — Sep. 20, 2024
By Liz Napolitano
The SEC is suing Green United for allegedly swindling investors by selling hardware that was supposed to mine crypto—but actually couldn’t.
A federal judge denied a crypto firm’s request last week to dismiss an SEC complaint alleging that the sale of its purported mining hardware to customers constituted an investment contract. And while the move spurred some speculation on social media over the implications for such hardware, legal analysts say there’s no immediate reason for concern.
According to the lawsuit, filed in March 2023 in the U.S. District Court for the District of Utah, Green United allegedly defrauded investors of $18 million by selling them “Green Boxes” that failed to mine digital tokens called GREEN as promised. That’s because the Ethereum-based tokens couldn’t actually be mined, the suit claims.
The ongoing case forms federal regulators’ latest attempts to eradicate “garden variety fraud” within the cryptocurrency industry and beyond, lawyers told Decrypt.
