Two individuals who were sued by the Securities and Exchange Commission (SEC) for allegedly orchestrating a fraudulent cryptocurrency mining scheme worth $18 million are now seeking to have the lawsuit dismissed. In court, they argue that the regulatory agency lacks authority over cryptocurrencies.
On May 19, Wright Thurston and Kristoffer Krohn separately filed motions to dismiss the lawsuit brought against them by the SEC.
The lawsuit targeted both individuals and their purported crypto mining and development company, Green United LLC. According to the SEC, they fraudulently sold securities in the form of "Green Boxes" and "Green nodes," marketed as miners for the GREEN token on the "Green Blockchain."
Thurston founded the company, which was contractually promoted by Krohn.
In their arguments for dismissal, Thurston and Krohn contend that the SEC does not possess jurisdiction over the digital asset ecosystem. They further state that Congress has explicitly rejected the SEC's authority over cryptocurrencies, referring to it as a consideration that has been dismissed.
The defendants also criticize the SEC for its alleged lack of clarity and consistency in defining cryptocurrencies. They echo recent claims suggesting that the regulator engages in "regulation by enforcement." Furthermore, in their bid to dismiss the case, Thurston and Krohn challenge the SEC's assertion that the Green Boxes constituted securities offerings or "investment contracts," as claimed in the SEC's original complaint filed in March.
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