Kristoffer Krohn asserted that the SEC claiming Green United sold securities was not true and wants the US Court of Appeals to look at the case.
Kristoffer Krohn wants to appeal the case brought by the US Securities Exchange and Commission (SEC) for his role in violating securities laws through Green United. Green United was accused by the SEC of running an $18 million fraudulent operation, which Krohn helped promote to investors. He argues that the SEC claiming the operation offered securities is incorrect.
Krohn requested a federal court in Utah last week to let the Court of Appeals decide if the equipment Green United offered to investors truly fell into the “common enterprise” aspect of the Howey Test. The SEC uses this test to determine if products or financial instruments offered are securities, which many in the crypto industry feel cannot fairly characterize crypto assets. However, it could make absolute sense in certain cases, which the regulator feels is the case with Green United, considering how its investors were left hanging with fake promises.
“It would be far more efficient and in the interests of justice to have this legal issue presented to the Tenth Circuit and resolved now rather than require Krohn to bear the costs of litigation and trial first,” Krohn’s request for the appeal mentioned. This request comes about a month after Utah District Court Judge Ann Marie Mciff Allen declined a request by Green United founder Wright Thurston, Krohn, and the company to dismiss the case. They argued that the SEC wrongly claimed their “Green Boxes” to be unregistered securities.
The SEC Accused Green United of Deceiving Investors and Scamming Their Funds
The regulator sued Thurston and Krohn for offering the Green Boxes to users and collecting their funds, claiming the equipment would mine GREEN tokens from the Green blockchain. However, no one trusted Green United with their money received the Green Boxes. Rather, their funds were used to buy Bitcoin mining rigs for themselves. Of course, none of the investors received those rigs.
Krohn’s recent request to appeal the case said, “The SEC did not, and cannot, allege that Green Box purchasers had any right or stake in the profits of Green United’s business operations,” Krohn said in his appeal bid.” He added, “The fact that Green Box purchasers were not offered the opportunity to share in Green United’s profits underscores that Krohn was simply selling high-powered computer hardware, not a security.”
The appeal, if allowed, will see Krohn in front of a three-judge panel in the US Courts of Appeal. That entire process could span months for a decision to be made.
