SEC Cracks Down on Crypto Executive Over $16 Million 'Insured' Token Scam

The US Securities and Exchange Commission (SEC) has taken action against Donald Basile, a crypto executive accused of orchestrating a multi-million dollar scam. The agency alleges that Basile and two companies he controlled raised around $16 million from investors through false claims tied to the 'insured' token Bitcoin Latinum.

According to the SEC's complaint, hundreds of investors were told that the asset was backed and insured by insurance companies, but regulators claim no such coverage was ever provided. The alleged scheme ran between March and December 2021, with Basile representing that investor funds would help support the underlying value of Bitcoin Latinum.

The SEC is seeking permanent injunctions, repayment of allegedly ill-gotten gains with interest, civil penalties, and a ban on Basile's participation in securities offerings. The regulator also wants to bar him from leading public companies in the future as an officer or director.