US regulators have just filed a complaint against a cryptocurrency executive who allegedly made a fraudulent securities offering worth $16 million.
US Securities and Exchange Commission (SEC) He says That GIBF GP Inc. And Monsoon Blockchain Corporation founder Donald Basil offered investors Simple Agreements for Future Tokens (SAFTs) that would supposedly allow them to acquire crypto assets called Bitcoin Latinum, BTCL, or LTNM once a certain milestone is met.
(T)SAFT has defined Milestone to mean “that the newly forked Bitcoin network is operational after a successful hard fork with token functionality as determined by (GIBF) in its sole discretion.”
The securities watchdog says Basile claimed LTNM was the world’s first insured digital asset with up to $1 billion in coverage from an international insurance broker and risk advisor even though no insurance company has ever issued a cryptocurrency insurance policy.
Basile was also accused of falsely stating that LTNM was backed by a basket of digital assets when the token had no asset backing at all.
He said at least 80% of the proceeds from the SAFT bid would be spent to support LTNM’s development or go to a seed fund, but this allegedly did not happen. The SEC says Basile instead used accounts containing investors’ money for his own benefit.
Basile allegedly used $4.1 million to purchase a condominium in Miami, Florida; $2.8 million to buy a house in Park City, Utah and $1.4 million to pay his personal American Express card. He also bought a horse for his daughter worth $160,000.
“Eventually, after selling the SAFTs to hundreds of investors, Basile stopped promoting LTNM; LTNM is now worthless, and many investors have lost their entire investments.”
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