SEC Charges Donald Basile in Alleged $16 Million Crypto Fraud
Bitcoin Latinum, or LTNM, raised funds through simple agreements for future tokens, or SAFTs, in an effort led by Donald Basile-controlled GIBF GP and Monsoon Blockchain. The SEC alleged that the defendants claimed the token was backed by up to $1 billion in insurance, an asset pool and a trust, none of which existed. The case highlights the investment risks of crypto assets marketed as “insured.”
The US Securities and Exchange Commission sued Basile, GIBF GP and Monsoon in federal court in the Eastern District of New York on April 17, 2026, alleging that they raised about $16 million from hundreds of investors. The SEC said the funds were used for purchases including about $4.1 million for a Miami condominium, $2.8 million for a Utah home and $160,000 for a horse. It is seeking disgorgement, civil penalties and a bar on Basile serving as a company officer.
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The history behind this eventSEC Sues Mining Automatic, Founder Over Alleged $22 Million Crypto Fraud
Crypto mining investments are exposed to volatile token prices, power costs and rising network difficulty, making claims of guaranteed returns a regulatory red flag. The U.S. Securities and Exchange Commission says Mining Automatic, operated through Bright Vision Distribution LLC, presented itself as an experienced mining business able to produce steady monthly payouts. The case is significant because it highlights how technically complex crypto ventures can be used to market investment contracts while obscuring whether investor capital is actually funding revenue-generating operations.
On July 20, 2026, the SEC filed partially settled charges against Mining Automatic and founder Zan Shaikh in federal court in Massachusetts. The agency alleges they raised about $22 million from more than 380 investors between June 2023 and May 2025, while using only about 13% of the money for purported mining expenses. The operation generated roughly $1.1 million in mining revenue but paid about $1.8 million in investor returns, meaning some payouts allegedly came from other investors’ funds. The SEC says at least $20 million more was collected than repaid; the defendants consented to permanent injunctions, with financial remedies to be decided by the court.
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