SEC Sues Crypto Mining Company: FUD Attempted to Spread!

According to the latest information, the US Securities and Exchange Commission (SEC) cryptocurrency sued a company that claimed it was mining.

SEC’s Lawsuit Against Cryptocurrency Mining Company Becomes The Subject Of Controversy

In its new lawsuit, the SEC argued that the mining equipment and software of Green United LLC did not actually mine digital assets as promised to investors. It is stated that the investors transferred $ 18 million to the Green United company for mining purposes.

According to the information provided by the SEC, instead of mining, Green United bought coins from exchanges and distributed them to investors’ accounts as “proof of successful mining operations.” The agency filed its complaint with the U.S. District Court for the District of Utah on March 3.

However, some Twitter users thought this was proof that the SEC had defined cryptocurrency mining as a security, causing a wave of FUD. But the real situation was clarified by an expert on Twitter:

“- Selling futures contracts on mining returns can be a security.

– Selling equipment or hosting cannot be securities.

– The company in question was not even mining and was running a direct scam.

The company did not use funds to purchase mining equipment, but instead bought tokens and distributed them over time to look like they were mining and to pocket the yield.

The line on when equipment and hosting services will become securities (in case of purchasing future return) is clear.”

1/2

This is either fear mongering FUD or the worst reading of a case ever.

– selling a futures contract on mining returns could be a security
– selling equipment or hosting is not
– company in question wasn’t even mining and was directly perpetuating a fraud https://t.co/fUHtAHxC2F

— Adam Cochran (adamscochran.eth) (@adamscochran) March 6, 2023

*Not investment advice.