Two people are requesting that the SEC’s lawsuit against them be dismissed on the grounds that the agency lacks jurisdiction over cryptocurrency. They are accused of conducting a fraudulent crypto mining scheme.
Two people who have been charged by the US securities regulator with conducting a fraudulent $18 million cryptocurrency mining scam are requesting that the case be dismissed on the grounds that the agency lacks jurisdiction over cryptocurrencies.
Wright Thurston and Kristoffer Krohn each submitted a request to dismiss a Securities and Exchange Commission lawsuit on May 19th.
The SEC filed a lawsuit against the two in March, together with the claimed cryptocurrency mining and development company Green United LLC, accusing them of deceptively marketing securities by selling “Green Boxes” and “Green nodes” that were promoted as miners for the GREEN token on the “Green Blockchain.”
They added the SEC has been “unclear and inconsistent” in defining crypto and echoed recent suggestions that the regulator was undertaking “regulation by enforcement,” adding:
“The SEC has instead abandoned any effort at proposed legislation or rulemaking, opting instead to attempt to litigate its way to a coherent regulatory scheme.”
According to the regulator, the alleged fraud raised about $18 million, and investors “did not receive” any of the BTC that Green United mined.