SEC v. Green United

The SEC sues Green United and founders alleging a fraudulent offering of securities in connection with the promotion and sale of investment contracts involving mining products that “mined” GREEN tokens. In reality GREEN was not a mineable asset and the Green Blockchain did not exist.

The Defendants have filed a Motion to Dismiss arguing that the SEC has not satisfied the “common enterprise” prong of the Howey Test under the McGill standard. The Tenth Circuit controls here and ruled in McGill that the “economic realities” of the transaction were to be analyzed to determine wether the transaction was an investment, as opposed to the vertical and horizontal commonality tests used in other circuits.

2:23-cv-00159