The US Securities and Exchange Commission (SEC) has secured a $1.1 million judgment in a crypto fraud case involving unregistered securities and false promotional claims.
The ruling, issued on 3 June by Judge Tiffany Johnson in a Georgia federal court, came after defendant Keith Crews failed to appear in court to respond to charges.
Crews allegedly raised $800,000 from around 200 investors through a coin named “Stemy Coin,” falsely marketed as being backed by gold, stem cell technology, and operational laboratories.
The judgment includes $530,000 in disgorged profits, $51,000 in prejudgment interest, and a $530,000 civil penalty.
In addition, the court permanently barred Crews from future violations of federal securities laws.
The SEC, which filed the case in August 2023, accused him of running the scheme between October 2019 and May 2021 through two entities: Four Square Biz and Stem Biotech.
SEC outlines extensive fraud over 18-month period
According to the SEC’s complaint, Crews targeted close-knit African-American and church communities, using personal connections to promote the coin.
Investors were told that Stemy Coin was linked to real-world medical innovations and hard assets, with purported partnerships involving medical professionals and biotech firms.
The agency concluded that “Crews and his entities had no existing stem cell technology, products, or operations.”
No partnerships existed with the claimed firms, and the coin was not backed by any assets.
These findings led to charges under several provisions of the Securities Act and Exchange Act, including anti-fraud and registration violations.
SEC’s crypto enforcement strategy changes under Trump
The ruling comes at a time when the SEC is shifting its approach to digital assets regulation.
Under President Donald Trump’s administration, the agency has adopted a more industry-friendly tone.
Paul Atkins, a former SEC commissioner and crypto advocate, was appointed SEC Chair and has led the shift away from enforcement-first strategies.
In a 19 May post on X, Kyle Chassé shared a quote from Atkins, who said, “The crypto markets have been languishing in SEC limbo for years. The SEC should not fear innovation. Rather, it should embrace and champion it.”
So far in 2025, the agency has dropped high-profile lawsuits against Coinbase and Cumberland DRW.
In February, it closed a separate probe into Uniswap Labs without enforcement action.
The same month, the SEC concluded its investigation into NFT and gaming project CyberKongz with no penalties.
More recently, it announced it would not pursue further legal action against Richard Heart, the founder of Hex, PulseChain, and PulseX.
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