SEC Says Crytpo Startup Used ICO Proceeds For Gold Mining

By Hailey Konnath (January 6, 2022, 9:54 PM EST) -- The U.S. Securities and Exchange Commission on Thursday accused cryptocurrency startup Crowd Machine Inc. and its Australian founder of defrauding investors by putting proceeds from an initial coin offering toward gold mining in South Africa rather than developing a new technology as was promised.

The SEC hit Crowd Machine and founder and CEO Craig Sproule, an Australian citizen, with a suit in California federal court, claiming that they made materially false and misleading statements in connection with the ICO for so-called Crowd Machine Compute Tokens.

That same day, Sproule and Crowd Machine consented to judgments permanently enjoining them from violating specific...

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