Originally published on: November 27, 2024
A Utah federal judge has rejected an appeal from a cryptocurrency promoter accused of orchestrating an $18 million fraud scheme. Judge Ann Marie McIff Allen refused Kristoffer Krohn’s request to dismiss a lawsuit filed by the US Securities and Exchange Commission (SEC) against Green United LLC.
In her ruling on November 26, Judge Allen stated that Krohn did not provide sufficient grounds for the appeal, therefore denying his request. Krohn had argued that the SEC failed to prove that the Green Boxes offered by Green United were investment contracts as claimed in the complaint.
The judge explained that Krohn’s interpretation of the securities-defining Howey test was flawed, and he did not provide legal support for his claims. The SEC alleges that Green United executives operated a fraudulent crypto mining scheme from April 2018 to December 2022, attracting investors with promises of high returns through investments in “Green Boxes” and “Green nodes” that purportedly mined Bitcoin.
Investors were led to believe that the company was developing a Green Blockchain and that the GREEN token would appreciate in value significantly. However, the SEC asserts that the Green Blockchain did not exist, and the Green token was created after hardware sales to investors to give the impression of a successful operation.
Wright Thurston, the founder of Green United, has also attempted to dismiss the lawsuit separately. It remains to be seen how the case will unfold as both defendants fight to clear their names in this high-stakes legal battle. Stay tuned for more updates on this developing story.
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