SEC Secures $1.1M Victory After Accused Crypto Fraudster Fails to Appear in Court
The U.S. Securities and Exchange Commission (SEC) recently secured a legal victory against Keith Crews, who was accused of operating a deceptive cryptocurrency scheme.
Crews, sued by the SEC in 2023, failed to appear in court to respond to the charges. Due to his absence, the court issued a default judgment in the SEC’s favor, awarding the agency a total of $1.1 million.
On June 3, U.S. District Judge Tiffany Johnson in Georgia ordered Crews to pay approximately $1.1 million in financial penalties. This amount includes $530,000 in illicit gains from his alleged misconduct, nearly $51,000 in prejudgment interest, and a $530,000 civil penalty.
In addition, Judge Johnson issued a permanent injunction prohibiting Crews from committing future violations of federal securities laws.
Crews’ Alleged Offence
The complaint against Crews alleged that he violated multiple federal securities laws, including fraud provisions under the Exchange Act and the Securities Act, as well as registration requirements.
According to the SEC, Crews created a fraudulent cryptocurrency called “Stemy Coin,” which he falsely promoted as a crypto asset security. He allegedly raised over $800,000 from approximately 200 investors by claiming to have built connections within African-American and church communities to gain their trust and support.
The SEC further claimed that Crews misled investors through a series of deceptive statements. He allegedly asserted that Stemy Coin was backed by stem cell technology and tangible assets such as gold.
He reportedly claimed that his company operated existing laboratories, had developed products, and possessed a successful track record in delivering stem cell therapies, all of which, according to the regulator, were false.
The SEC also accused Crews of running a crypto fraud scheme using Four Square Biz and Stem Biotech between October 2019 and May 2021, which they used to perpetuate those crimes.
In the court filing, the regulator noted that the accused claimed to be partnering with research teams and doctors, and the Stemy Coin allowed investors to gain access to the ecosystem. The SEC claimed that Crews’ claims were unfounded and they “had no existing stem cell technology, products, or operations, there was no partnership with the claimed entities.”
Recently, U.S. SEC Commissioner Paul Atkins stated that the agency would begin using the “notice and comment” process to shape crypto policy, moving away from a reliance on enforcement through lawsuits.
Since assuming the role of SEC Chair, Atkins has dismissed several lawsuits against crypto companies and has taken steps to adopt a more collaborative and transparent regulatory framework for the industry.
The post SEC Secures $1.1M Victory After Accused Crypto Fraudster Fails to Appear in Court appeared first on Coinspeaker.
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SEC Secures $1.1M Victory After Accused Crypto Fraudster Fails to Appear in Court
The U.S. Securities and Exchange Commission (SEC) recently secured a legal victory against Keith Crews, who was accused of operating a deceptive cryptocurrency scheme.
Crews, sued by the SEC in 2023, failed to appear in court to respond to the charges. Due to his absence, the court issued a default judgment in the SEC’s favor, awarding the agency a total of $1.1 million.
On June 3, U.S. District Judge Tiffany Johnson in Georgia ordered Crews to pay approximately $1.1 million in financial penalties. This amount includes $530,000 in illicit gains from his alleged misconduct, nearly $51,000 in prejudgment interest, and a $530,000 civil penalty.
In addition, Judge Johnson issued a permanent injunction prohibiting Crews from committing future violations of federal securities laws.
Crews’ Alleged Offence
The complaint against Crews alleged that he violated multiple federal securities laws, including fraud provisions under the Exchange Act and the Securities Act, as well as registration requirements.
According to the SEC, Crews created a fraudulent cryptocurrency called “Stemy Coin,” which he falsely promoted as a crypto asset security. He allegedly raised over $800,000 from approximately 200 investors by claiming to have built connections within African-American and church communities to gain their trust and support.
The SEC further claimed that Crews misled investors through a series of deceptive statements. He allegedly asserted that Stemy Coin was backed by stem cell technology and tangible assets such as gold.
He reportedly claimed that his company operated existing laboratories, had developed products, and possessed a successful track record in delivering stem cell therapies, all of which, according to the regulator, were false.
The SEC also accused Crews of running a crypto fraud scheme using Four Square Biz and Stem Biotech between October 2019 and May 2021, which they used to perpetuate those crimes.
In the court filing, the regulator noted that the accused claimed to be partnering with research teams and doctors, and the Stemy Coin allowed investors to gain access to the ecosystem. The SEC claimed that Crews’ claims were unfounded and they “had no existing stem cell technology, products, or operations, there was no partnership with the claimed entities.”
Recently, U.S. SEC Commissioner Paul Atkins stated that the agency would begin using the “notice and comment” process to shape crypto policy, moving away from a reliance on enforcement through lawsuits.
Since assuming the role of SEC Chair, Atkins has dismissed several lawsuits against crypto companies and has taken steps to adopt a more collaborative and transparent regulatory framework for the industry.
The post SEC Secures $1.1M Victory After Accused Crypto Fraudster Fails to Appear in Court appeared first on Coinspeaker.
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