Kristoffer Krohn Appeals SEC's $18M Crypto Mining Fraud Allegations

Green United’s Kristoffer Krohn Fights SEC Allegations

Prominent cryptocurrency promoter Kristoffer Krohn is currently in a legal battle against the U.S. Securities and Exchange Commission (SEC) regarding accusations of his involvement in an $18 million cryptocurrency mining fraud scheme. Krohn advocates for the dismissal of the SEC's allegations, arguing that the charges of selling securities are completely unfounded.

Krohn's Appeal to the Federal Court

On October 24, Krohn took his case to a federal court in Utah, requesting that the Tenth Circuit Court of Appeals be the body to assess whether the buyers of Green United’s mining equipment are engaged in a 'common enterprise.' This inquiry is crucial, as it serves as a primary foundation for the SEC's assertions about the sale of investment contracts under securities laws.

Key Arguments Presented

In his appeal, Krohn firmly stated, "The SEC has not, and cannot, allege that Green Box purchasers have any rights or interests in Green United's business operations profits." This statement underscores his conviction that the SEC's framework for alleging securities violations is not applicable in this case.

Future Proceedings

If Krohn's appeal meets with success, he will be given an opportunity to defend his stance before a three-judge appellate panel. This process is anticipated to extend over several months, during which a final decision on the appeal is expected.

Background on the SEC's Allegations

In September, the SEC's substantial lawsuit against Green United, alleging an $18 million crypto mining fraud, was not dismissed. This underscored the seriousness of the claims directed at Krohn and his business activities within the cryptocurrency industry.

The Implications of the Case

The outcome of this legal dispute could have significant implications for both Green United and the cryptocurrency community at large. Should Krohn overturn the SEC's lawsuit, it might set a precedent for how similar cases are handled in the future, potentially affecting regulations surrounding cryptocurrency investments.

Final Thoughts

The ongoing situation involving Kristoffer Krohn and Green United is one that all stakeholders in the cryptocurrency sector are closely monitoring. It highlights the contentious nature of regulations in a rapidly evolving industry and stresses the need for clarity in laws governing cryptocurrency transactions.