The Securities and Exchange Commission has filed a lawsuit against Donald Basile, accusing him of orchestrating a $16 million fraud scheme involving the cryptocurrency Bitcoin Latinum. The suit alleges Basile used two companies, Monsoon Blockchain Corp. and GIBF GP Inc., to raise funds via Simple Agreements for Future Tokens while misleading investors with false claims of insurance and asset backing. According to the complaint, the funds were misused for personal expenses, including purchasing property and a $160,000 horse. The SEC seeks to bar Basile from the securities industry and require repayment with interest.
The SEC has filed a case against crypto mogul Donald Basile for alleged fraudulent statements regarding the token Bitcoin Latinum. The regulator claims he raised roughly $16 million from March to December 2021 using companies under his control.
Investors were offered Simple Agreements for Future Tokens guaranteeing future deliveries of Bitcoin Latinum. The SEC says Basile advertised the token as insured and backed by actual assets, claims which were allegedly false.
According to the complaint, millions were misused for personal gain, including purchasing property, paying off credit card debts, and buying a horse worth about $160,000. The regulator wants to permanently bar Basile from the securities industry and require repayment with interest, civil fines, and disqualification from corporate leadership.
Currently, the Bitcoin Latinum website is not working, and an error page appears. In a separate update released last week, the SEC noted that not all prior crypto-related enforcement actions had been beneficial to investors.
The commission pointed out that prior efforts could have interpreted securities law improperly. Under Chairman Paul Atkins, the SEC states it is now focusing on cases of fraud, market manipulation, and severe investor abuse.
