Legal experts: SEC v. Green United case mainly targets specific fraudulent behavior

The U.S. Securities and Exchange Commission (SEC)'s lawsuit against crypto company GreenUnited has recently attracted industry attention. The SEC accused Green United of defrauding investors of $18 million by selling so-called "GreenBoxes" mining equipment. Last week, a federal judge rejected GreenUnited's request to dismiss the case, which triggered speculation on social media that the sale of crypto mining hardware may be considered securities. However, several legal experts said there is no reason to be overly concerned at this time. Ishmael Green, partner at DiazReus Law Firm, pointed out that as long as the mining equipment is sold with the understanding that the end user will mine, there will be no problem. "In the Green United case, the sales agreement for the mining equipment stated that Green United would control and operate the system, and this is the problem." Hadas Jacobi, consultant at ReedSmith Law Firm, said that although the SEC did not explicitly mention managed mining, this could have an impact on managed mining services. Although Green United tried to portray the case as a misunderstanding of managed mining by the SEC, the judge rejected its request to dismiss the case. The judge has only decided to hear the case and has not ruled on the SEC's arguments.