A U.S. court ruled that the "Green Boxes" mining equipment sold by Green United meets the definition of a security

ChainCatcher News: The U.S. Securities and Exchange Commission (SEC) has won a victory in the $18 million cryptocurrency mining fraud case against Green United LLC.

A U.S. federal court ruled that the "Green Boxes" mining devices sold by Green United meet the definition of securities, rejecting the company's motion to dismiss the lawsuit. The SEC accused the company of falsely promoting these devices as a means to mine the fictitious GREEN token, while they were actually used for Bitcoin mining, without disclosing relevant information to investors.

The court confirmed that the SEC proved the existence of an investment contract through the sale and operating agreements of these devices. The judge dismissed Green United's defense that its products are not securities, stating that the agency sufficiently alleged all necessary elements of a security.

Previous news: Green United failed to dismiss the $18 million cryptocurrency mining fraud lawsuit.