The US Securities and Exchange Commission has filed a lawsuit against crypto executive Donald Basile, alleging he and two companies under his control raised roughly $16 million from investors through misleading claims tied to a so-called “insured” cryptocurrency, Bitcoin Latinum.
According to a complaint filed Friday in the US District Court for the Eastern District of New York, Basile allegedly operated the scheme between March and December 2021 via Monsoon Blockchain Corp. and GIBF GP Inc. Investors were offered Simple Agreements for Future Tokens (SAFTs), promising future delivery of the asset.
Regulators claim that hundreds of investors were told the token was backed and insured, despite no evidence that any insurance provider ever offered such coverage.
The case is among the relatively few enforcement actions brought by the SEC under the Trump administration, which has indicated a more crypto-friendly regulatory approach compared to earlier administrations.
Funds allegedly used for personal expenses
The SEC alleges Basile repeatedly promoted Bitcoin Latinum as an insured, asset-backed cryptocurrency, claiming investor funds would support its value. Instead, authorities say millions were diverted for personal use, including real estate purchases, credit card payments, and even the purchase of a $160,000 horse.
The regulator is seeking permanent injunctions, repayment of alleged illicit gains with interest, civil penalties, and a ban on Basile participating in future securities offerings. It is also pursuing an officer-and-director bar to prevent him from leading public companies.
The Bitcoin Latinum website is currently inaccessible, displaying a 404 error.
The SEC recently acknowledged that many of its past enforcement actions against crypto firms offered limited direct benefit to investors, suggesting the agency had prioritized case volume over meaningful protection.
According to the regulator, since fiscal 2022 it has brought 95 actions and collected $2.3 billion in penalties tied to “books-and-records” violations. However, several cases involving crypto registration requirements and dealer definitions failed to demonstrate clear investor harm.
The agency said this strategy reflected a misreading of securities laws and a misallocation of enforcement resources. Under Chair Paul Atkins, appointed in 2025, the SEC says it is shifting away from “regulation by enforcement” and instead focusing on fraud, market manipulation and serious breaches of trust.
