SEC Charges Bitcoin Latinum Founder Donald Basile with $16 Million Investor Fraud Scheme

The US Securities and Exchange Commission has charged Donald Basile, the founder of Bitcoin Latinum, with $16 million in investor fraud. The charges center on false claims made to investors about insurance coverage and asset backing for the cryptocurrency.

According to regulatory documents, Basile claimed that Bitcoin Latinum was the world's first insured digital asset, with up to $1 billion in coverage. However, regulators say no insurance company ever issued such a policy. No coverage was ever in place for Bitcoin Latinum or any part of the SAFT offering.

The SEC also alleges that Basile told investors that 80% or more of proceeds would be used to support the underlying value of Bitcoin Latinum or go into an underlying fund. Instead, he reportedly used millions for personal expenses, including real estate purchases and credit card payments. He allegedly bought a $160,000 horse using investor funds.

The regulator is seeking permanent injunctive relief against Basile and his companies, as well as disgorgement of ill-gotten gains with prejudgment interest. Civil penalties are also being sought to address the alleged misconduct by Basile and his entities.