US regulators have just filed a complaint against a crypto giant who allegedly paid $16 million in fraud.
The US Securities and Exchange Commission (SEC) he says that GIBF GP Inc. and founder of Monsoon Blockchain Corporation Donald Basile offered investors Simple Agreements for Future Tokens (SAFTs) that would allow them to receive a crypto asset called Bitcoin Latinum, BTCL or LTNM once a certain event is met.
“(T)he SAFT defined Milestone to mean ‘no fork where the Bitcoin Network is working after a successful Hard Fork and token work as determined by (GIBF) in its discretion’.”
Security officials say Basile said LTNM is the world’s first $1 billion insured asset from a global insurance broker and risk advisor even though no insurance company has ever issued a cryptocurrency policy.
Basile is also falsely accused that LTNM is backed by a basket of digital assets when the token has nothing.
He said that 80% of SAFT’s money will be used to support the development of LTNM or go to the fund, but this did not happen. The SEC alleges that Basile instead used accounts that contained business funds for personal gain.
Basile reportedly spent $4.1 million on a condo in Miami, Florida; $2.8 million for a house in Park City, Utah and $1.4 million to pay off his American Express card. He also bought his daughter a horse worth 160,000 dollars.
“Finally, after selling SAFTs to hundreds of investors, Basile stopped promoting LTNM; LTNM is now worthless, and many investors have lost all their money.”
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