A U.S. federal court has sided with the Securities and Exchange Commission (SEC), defining crypto mining devices as securities. The decision comes amid the SEC’s ongoing lawsuit against Green United LLC, which the agency accused of operating a fraudulent scheme involving the sale of crypto mining hardware.
Judge Defines Crypto ‘Boxes’ as Securities
In a recent ruling, U.S. District Court Judge Ann Marie McIff Allen determined that Green United’s mining devices, referred to as “Green Boxes,” meet the legal definition of securities under U.S. law.
The US SEC’s lawsuit against Green United LLC alleged that the company raised $18 million from investors by falsely marketing the Green Boxes as miners for a non-existent digital token called GREEN on a so-called “Green Blockchain.”
The court found that the SEC had sufficiently demonstrated the existence of an investment contract through the sale of these devices, along with a hosting agreement for operating the Green Boxes. The judge rejected Green United’s argument that its products were not securities, stating that the agency had adequately alleged all necessary elements of a security.
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