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A U.S. court has ruled that crypto mining boxes sold by Green United are securities, satisfying the SEC claims. According to Bloomberg Law, Green United did not convince a federal court to dismiss a civil fraud lawsuit from the Securities and Exchange Commission, which accused the firm of misleading investors. The lawsuit says the company’s mining equipment, known as “Green Boxes,” was part of a securities transaction. What is the essence of the fraud? In March 2023, the Utah-based mining company Green United was suspected of fraud. The Commission later charged the company with violating the Securities Act and selling fake assets worth $18 million. All the details of the case were included in the SEC filing. It featured two people — the company’s founder, Wright Thurston, and the leading promoter, Kristoffer Krohn. Thurston and Krohn positioned their business as green mining. They offered their clients the opportunity to invest in equipment and promised a monthly income of up to 50%. The minimum investment was $3,000. The agency concluded that Green United had never been involved in green mining. They directed all client funds to mining Bitcoin (BTC) and took the profits for themselves. “Unlike ERC-20 tokens (such as GREEN), certain crypto assets like Bitcoin use the process of mining to generate new tokens. With such crypto assets, a new token is mined as a reward for the miners who complete algorithms with cryptographic hash functions that verify new transactions on the Blockchain.” The SEC believes that Green United defrauded its investors. The devices were sold with hosting agreements, under which the company would manage Green Boxes for investors, promising them huge profits. The U.S. District Court for the District of Utah, headed by Judge Ann Marie McIff Allen, agreed with the SEC. According to the SEC, Green United did…

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Filed under: News - @ October 2, 2024 2:12 am