Green United Promoter Kristoffer Krohn To Appeal SEC’s $18M Crypto Mining Fraud Lawsuit
Green United promoter Kristoffer Krohn pushes to appeal the $18 million crypto mining fraud lawsuit from the US Securities and Exchange Commission (SEC).
Krohn claims that the SEC’s argument against him over selling securities was wrong. The securities regulator accused Green United of misleading investors by selling fake crypto mining equipment.
Also, the suit mentioned Krohn for allegedly marketing $3,000 “Green Boxes,” which promised investors between 40% and 50% monthly returns.
Kristoffer Krohn, the United Green promoter, plans to appeal against the SEC’s $18 million crypto mining fraud case.
Krohn disclosed his move in an interlocutory appeal bid on October 24 to a federal court in Utah. According to Krohn, the Tenth Circuit Appeals Court would decide if purchasing a company’s equipment means joining a “common enterprise.”
The SEC included Krohn in the $18 million fraud case with Green United. The regulator claimed that the firm sold fake crypto-mining equipment to investors, violating securities laws.
However, Krohn believes an appeal court should force the securities regulator to drop its suit against him. He maintained that the SEC’s argument against him was wrong.
His interlocutory appeal stated: “It would be far more efficient and in the interests of justice to have this legal issue presented to the Tenth Circuit and resolved now rather than require Krohn to bear the costs of litigation and trial first.”
Further, Krohn’s appeal bid highlighted that the SEC didn’t and can’t claim that Green Box buyers are part of fraudulent actions. Such purchasers have a stake in the company’s profits or business operations.
In addition, the bid argued that Green Box purchasers don’t partake of Green United’s earnings. This means that Krohn only engaged in the sales of high-powered computer hardware, not security.
Moreover, the promoter indicated that the Tenth Circuit has yet to release a “clear binding law” regarding what defines an investment contract as related to crypto.
Again, Krohn said, “While the order concluded that the SEC adequately alleged the existence of an investment contract under the facts pled in the amended complaint, reasonable judges might differ given the nascent stage of the technology involved in the instant case.”
If the interlocutory appeal bid succeeds, Krohn will face a three-judge panel to debate his course. This process could last for several months before the lawsuit concludes.
The SEC Sues Green United And Its Promoter, Maintaining Its Crackdown On Crypt-Related Firms
In March 2023, the US securities regulator sued Green United, its founder Wright Thurston and promoter Krohn.
The Commission alleged that the company deceived investors by selling fake crypto-mining equipment and telling them it would mine the GREEN toke on the Green Blockchain.
However, according to the regulator, such promises were lies as GREEN is not mineable, and the blockchain never existed. Instead, the founder diverted investors’ funds to purchase rigs and mine Bitcoin, which gave the investors nothing.
Meanwhile, Thurston and Krohn filed a dismissal motion over the SEC’s suit, stating the regulator lacked authority over crypto.
The motion claimed that Congress rejected the SEC’s authority over the crypto industry. However, US Federal Judge Allen denied the motion for dismissal.
