US SEC has accused Green United of running a fraudulent operation by raising $18 million from investors through the sale of these devices.
The Securities and Exchange Commission (SEC) has been successful in having a federal court in the United States of America rule that cryptocurrency mining machines are securities.
The Securities and Exchange Commission (SEC) is suing Green United LLC for allegedly running a fraudulent operation that involved the sale of cryptocurrency mining hardware.
Judge Defines Crypto ‘Boxes’ as Securities
The ruling comes amid ongoing litigation against Green United LLC. The United States District Court’s Judge Ann Marie McIff Allen recently ruled that Green United’s mining devices, also known as “Green Boxes,” meet the legal definition of securities under US law.
US SEC Sues Green United LLC
In its action against Green United LLC, the United States Securities and Exchange Commission (SEC) said that the firm collected $18 million from investors by deceptively promoting the Green Boxes as miners for a digital token called GREEN that did not exist on a blockchain that was referred to as a “Green Blockchain.”
The court came to the conclusion that the Securities and Exchange Commission (SEC) had adequately proved the existence of an investment contract through the sale of these devices, in addition to a hosting arrangement for the operation of the Green Boxes.
The judge dismissed Green United’s contention that its products did not constitute securities, stating that the agency had adequately alleged all the necessary elements to constitute a security.
