SEC Wins $11 Million Default Judgment Against GAW Miners

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The US Securities and Exchange Commission (SEC) has received default judgments towards cryptocurrency mining corporations GAW Miners and Zen Miner.

The determination brings to a detailed a part of the SEC’s authorized effort towards GAW, Zen Miner and their CEO Homero Josh Garza, who it sued in December 2015 for securities legislation violations, in addition to the operation of a Ponzi scheme. The SEC’s case centered across the sale of Hashlets, which have been “virtual miners” offered via a bid/ask market on a platform referred to as ZenCloud. The sale of these Hashlets, the SEC argued in court docket, quantity to an unlicensed securities providing.

According to court docket paperwork, each GAW and Zen Miner are required to disgorge $10,078,331 in income, together with $305,768 price of prejudgment curiosity.

Both corporations are additional required to pay $1m apiece in civil penalties, in response to the choice signed by US District Judge Jeffrey Meyer. The court docket order was signed on 31st May, although the SEC announced its court docket win this afternoon.

Notably, the choice didn’t embrace Garza. “The SEC’s litigation continues against Garza,” the company mentioned in its launch.

GAW Miners fell aside in mid-2015 amid rising controversy over its mining operations and the failure of its various digital currency, paycoin, which it launched in the beginning of that 12 months.

Image through Shutterstock

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