Originally published on: November 27, 2024
A Utah federal judge has rejected an appeal from a promoter accused of orchestrating an $18 million crypto fraud scheme. Judge Ann Marie McIff Allen dismissed Kristoffer Krohn’s request to dismiss a lawsuit filed by the US Securities and Exchange Commission (SEC) against Green United LLC, a crypto mining firm allegedly involved in the scam.
In her ruling on Nov. 26, Judge Allen stated that Krohn failed to provide sufficient grounds for the appeal and did not demonstrate a significant difference of opinion regarding the legal issues addressed in her previous judgment on Sept. 23. Krohn had argued that the SEC had not proven that the investment contracts offered by Green United were securities under the Howey test.
The SEC accused Green United executives of defrauding investors by selling investments in “Green Boxes” and “Green nodes” that were supposed to mine Bitcoin. The regulator alleged that the company falsely claimed to be developing a Green Blockchain and a GREEN token with promised high returns. However, the SEC found that the Green Blockchain did not exist, and the Green token was distributed to create an illusion of success.
Founder Wright Thurston has also attempted to dismiss the lawsuit. Despite these challenges, the SEC remains committed to prosecuting alleged crypto fraud cases.
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