SEC Charges Basile With Defrauding Investors in $16 Million Crypto Offering

By Katherine Hamilton

Donald Basile and two entities he controlled were charged with allegedly defrauding investors in a $16 million cryptocurrency securities offering.

The Securities and Exchange Commission said Friday that Basile offered Simple Agreements for Future Tokens, also known as SAFTs, that purported to give investors the right to receive a crypto asset. Basile offered the securities directly to investors and through GIBF GP, Inc. and Monsoon Blockchain Corporation, according to a complaint filed in U.S. District Court for the Eastern District of New York.

Basile didn't immediately respond to a request for comment.

The SEC alleges that Basile told investors the securities gave them the right to receive Bitcoin Latinum, which he said was insured. However, no insurance company ever issued a policy for Latinum or any part of the SAFT offering, according to the complaint said.

Basile also allegedly told investors proceeds of the offering would be used to support the underlying value of Latinum, when instead he was using millions of the funds to make personal purchases of real estate, credit card charges and a $160,000 horse, according to the complaint.

"The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and a conduct?based injunction from participating in the issuance, purchase, offer, or sale of any security except for certain transactions for their personal accounts against all defendants as well as an officer-and-director bar against Basile," the SEC said in a statement.

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(END) Dow Jones Newswires

04-17-26 1926ET