A Utah federal judge has rejected an appeal to dismiss a Securities and Exchange Commission (SEC) lawsuit involving a promoter of an allegedly fraudulent crypto mining firm that executed an $18 million scheme. Judge Ann Marie McIff Allen denied Kristoffer Krohn's appeal, stating he failed to prove any substantial grounds for disagreement regarding the law. Krohn argued that the SEC did not demonstrate that the products labeled 'Green Boxes' were securities, suggesting that the SEC misinterpreted elements of the Howey test, which defines what constitutes a security. However, the judge noted that Krohn's interpretation was flawed, as it cherry-picked terms from different definitions without providing legal support. The SEC's lawsuit accuses Krohn and Green United LLC of defrauding investors by selling purported investments in devices that allegedly mined Bitcoin between April 2018 and December 2022. The case continues as Green United's founder also seeks to dismiss the allegations.

Source 🔗