The U.S. Securities and Exchange Commission’s lawsuit against Green United, LLC is nothing more than a misguided attempt to change securities law by lawsuit instead of the legal rulemaking process.
The SEC alleges fraud but notably their filing does not contain a single allegation of a single victim or even an investor losing any money. Additionally, they try to change the law by classifying hosted mining as a security, a practice performed by numerous public companies. These allegations of wrongdoing are not only baseless but also unprecedented.
While the SEC allocated their limited resources into investigating this matter, they failed to police the fraud and subsequent collapse of FTX. This case is a futile attempt to save face by frivolous lawsuits against innovative members of the blockchain industry.
Several months ago, in an abundance of caution, Green United offered refunds to customers. With the thousands of nodes sold, only a very small minority of node owners requested a refund. The remaining node owners opted to continue participating in the green community. The SEC is aware of this fact but omitted it from their filing because they know it undermines their whole narrative alleging fraud.
Green United intends to fight this case and win.