BlockBeats reported that on September 26, according to Bloomberg Legal News, Judge Ann Marie McIff Allen of the U.S. District Court for the District of Utah stated: “The U.S. Securities and Exchange Commission (SEC) has fully accused Green Boxes (computer hardware) of constituting securities in combination with custody agreements to operate Green Boxes.”

This investigation is separate from whether the digital assets themselves and their transactions meet the U.S. Supreme Court’s test for investment contracts.

Green United LLC failed to convince a federal court to dismiss a civil fraud lawsuit filed by the U.S. Securities and Exchange Commission on the grounds that customers of its cryptocurrency mining “Boxes” or hardware did not engage in securities transactions with it.

According to the SEC lawsuit filed in March 2023, Green United founder Wright Thurston and major promoters offered $3,000 investments in “Green Boxes,” specialized crypto mining machines that allegedly mine GREEN tokens on the Green blockchain. Investors were told that the mined GREEN tokens support a “public global decentralized power grid” while generating a respectable return of 40% to 50% per month. Investors were also told that the success of their investment depended on Green United maintaining control of its “Green Boxes,” which would be remotely hosted in data centers controlled by Green United. The GREEN tokens generated by their machines would be distributed to investors.

According to the SEC, Green United’s miners never mined GREEN because GREEN is not a mineable crypto asset and the so-called Green Blockchain does not exist. Green United’s real scheme was to deceive investors into buying S9 Antminers that were disguised as “Green Boxes.” Investors’ purchases were valid and “mined Bitcoin, but investors did not receive it.”

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