PANews reported on November 27 that according to Cointelegraph, Utah federal judge Ann Marie McIff Allen rejected the appeal of Green United promoter Kristoffer Krohn against her September 23 ruling, which allowed the U.S. Securities and Exchange Commission (SEC) to file a lawsuit against Green United LLC. The judge said Krohn did not provide reasons for the appeal.
In his arguments to dismiss the lawsuit, Krohn said the SEC failed to prove that the Green Boxes offered by Green United were investment contracts, as the regulator claimed in its complaint. He also claimed that the SEC confused elements of the Howey test for defining securities. But Judge Allen said Krohn's arguments were flawed, accusing him of taking terms from two different definitions out of context and "providing no legal support to prove that any court has adopted the definition he describes."
In 2023, the SEC charged Green United executives with operating a fraudulent cryptocurrency mining scheme that defrauded investors of $18 million between April 2018 and December 2022 by selling Green Boxes and Green Boxes investment products.
