$18 Million Crypto Mining ‘Fraud’ Prosecuted by SEC

Mining BTC and giving away shitcoins – Deals scams and Ponzi schemes are unfortunately not uncommon in the cryptosphere. The scammers do not hesitate for a second to harness the enthusiasm crypto-investors for this sector full of innovations. This time Securities and Exchange Commission (SEC) is cracking down on a crypto mining company called Green Unitedwho would have mounted a “fraudulent scheme” for his own benefit.


Green United promised “green” but preferred Bitcoin

The society Green United LLCbased in Utah (USA) claimed to want to revolutionize the crypto market by creating a “ decentralized global utility grid “. And beware, the company promised to launch: its own GREEN blockchainhis own GREEN tokenof the “Green Nodes” (green nodes) and “Green Boxes” (green mining devices). A whole 100% greenish program in short.

Since then, reality has caught up with the beautiful promises, and it would not be really not a pretty sight according to Securities and Exchange Commission (DRY). The US financial policeman has indeed deposit a complaint against Green United in Utah District Court on March 3, 2023.

The SEC accuses the supposed crypto project of having designed a “fraudulent scheme” to the detriment of its customers. Indeed, the “Green Boxes” sold at exorbitant prices to investors were in reality not intended to mine GREEN tokens, as the company claimed, but allowed to buy mining devices of… good old bitcoins (BTC)!

The Green Boxes which promised the mining of “green” tokens would actually be used to mine good bitcoin.
The “Green Boxes” were actually bitcoin mining machines

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A mining of precious BTC, to pass on worthless GREEN tokens

According to the complaint, Green United raised more than $18 million between April 2018 and December 2022 for its so-called products. The SEC then details the operation of this fraudulent system:

“Green Boxes and Green Nodes purchased by investors did not mine GREEN tokens. This is because GREEN, an ERC-20 token [sur Ethereum], was not a minable crypto-asset, and that the “GREEN blockchain” promoted by the defendants did not exist. Indeed, the GREEN tokens were only created several months after the initial offer and sale of the Green Boxes to investors. In order to create the appearance of a successful mining operation, starting in 2019, Green United periodically distributed GREEN tokens to investors’ wallets. (…) And contrary to claims made at the time, the GREEN had no real value, because it was not traded on a secondary market. »

And for good reason: with the money collected for the so-called Green Boxes, they were in fact S9 Antminers who were purchased. ASIC machines which are therefore bitcoin mining devices. All there is more commmon in this sector of crypto mining.

Investors have of course never seen the color of these precious bitcoins. Receiving instead GREEN tokens with a very virtual value. At the same time, with promises (too good to be true) of returns of up to 50% per monththere was reason to be wary of all these promises “ green “. The society Alameda Researchfounded by Sam Bankman-Friedalso promised, “risk-free high returns”. We have all seen, in November 2022, towards what a catastrophic explosion all these pious wishes will have led

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