SEC Wins $1.1 Million Judgment Against Crypto Fraudster Keith Crews
The U.S. Securities and Exchange Commission (SEC) achieved a legal victory against Keith Crews, who was accused of running a fraudulent cryptocurrency scheme.
- Crews did not appear in court, leading to a default judgment favoring the SEC.
- The court ordered Crews to pay $1.1 million, including $530,000 in illicit gains and a $530,000 civil penalty.
- A permanent injunction was issued against Crews to prevent future violations of federal securities laws.
Details of the Allegations
- Crews allegedly created "Stemy Coin," falsely promoted as a crypto asset security.
- He raised over $800,000 from around 200 investors by claiming connections within African-American and church communities.
- The SEC noted misleading statements about Stemy Coin's backing by stem cell technology and tangible assets like gold.
- Crews claimed operational laboratories and successful stem cell therapies, which the SEC deemed false.
- His fraud scheme involved Four Square Biz and Stem Biotech from October 2019 to May 2021.
In related news, SEC Commissioner Paul Atkins announced plans to use the “notice and comment” process for shaping crypto policy, moving away from enforcement lawsuits. He has also dismissed several lawsuits against crypto companies to promote a more collaborative regulatory approach.