The lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against the company called Green United may proceed to a hearing by a judge in Utah.

The SEC accuses Green United of defrauding investors by promising cloud mining, and in this context, the legal basis necessary for the case to proceed has been provided.

Last March, the SEC alleged that Utah-based Green United defrauded investors of $18 million. The company committed this fraud by selling fake crypto mining devices called “Green Boxes” to investors in a multi-layered marketing scheme.

In this scheme, the company’s partners received a portion of the proceeds from each $3,000 of “Green Boxes” they sold.

According to the SEC’s allegations, investors were told that the so-called Green Boxes were designed as private crypto miners and mined GREEN tokens. It has been claimed that these boxes are supported by a structure called Green Blockchain and provide investors with a monthly profit of 40% to 50%.

However, investors have learned that these devices do not physically arrive at them and the machines will be hosted remotely in a data center controlled by Green United.

In reality, Green Blockchain did not exist, but Green Boxes existed as part of some kind of fraud story.

Will Thurston, the founder of Green United, did not use the money he collected from investors for fake Green Boxes, but instead purchased commercially available S9 Antminer mining machines and used them for his own bitcoin mining.

According to the SEC, investors never saw the bitcoins they earned through these machines, but instead received worthless GREEN tokens that Thurston generated on the Ethereum blockchain.

Green United’s lawyers petitioned the court to dismiss the case, but U.S. District Court Judge Ann Marie McIff Allen found the SEC’s claim of “a security in the form of Green Boxes” sufficiently credible and stated that the necessary conditions were met for the fraud allegations to also proceed to trial. .

This decision created a huge debate in the online crypto community. Specifically, at least one major social media account wrote, “SEC says crypto mining devices are securities.” He made a statement.

However, Neeraj Agrawal, director of communications at crypto lobby group Coin Center, disputed this claim and said, “This is false. “Stay calm,” he replied. Agrawal stated that this situation has nothing to do with managed crypto mining and is just a regular “cloud mining” scam.

The judge’s decision on Monday does not specify anything about the actual S9 Antminers or bitcoin that Green United purchased with investor funds.

While this further deepens the complexity of the fraud case and the problems faced by investors, how the court process will proceed and the attitude the SEC will take towards other fraud cases are eagerly awaited in the crypto world.