SEC files lawsuit against Donald Basile over $16M crypto scheme, alleging false claims about insured Bitcoin Latinum token and misuse of funds.
The U.S. Securities and Exchange Commission has filed a lawsuit against Donald Basile over a crypto scheme. The case alleges that he raised approximately $16M in investors. The money was associated with false promises of a token named Bitcoin Latinum.
As per the complaint that was filed in the U.S. District Court of the Eastern District of New York, Basile operated under two companies. These include Monsoon Blockchain Corp. and GIBF GP Inc.. Together, they allegedly targeted hundreds of investors.
According to The Wall Street Journal, between March and December 2021, Basile raised nearly $16M through token agreements. These were referred to as Simple Agreements for Future Tokens, also referred to as SAFTs. Thus, investors were promised to get tokens in the future.
Furthermore, Basile marketed the token Bitcoin Latinum as a special digital asset. He referred to it as the first insured crypto-token in the world. Consequently, most investors thought that their money was secure and safe.
However, the SEC asserts that these insurance statements were misleading. It claimed that no company had ever offered such insurance cover. Indeed, Basile allegedly claimed up to $1B of protection without evidence.
Moreover, the suit claims that the money was not spent in accordance with the...
SEC files lawsuit against Donald Basile over $16M crypto scheme, alleging false claims about insured Bitcoin Latinum token and misuse of funds. The U.S. Securities and Exchange Commission has file...