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A federal judge last week denied Green United’s request to toss out the SEC’s complaint, leaving the Utah-based crypto outfit locked in a legal battle. This twist caught fire on social media, sparking wild chatter on the streets of Crypto Twitter. But legal experts say the verdict isn’t shaking the mining hardware market much—yet.

In a lawsuit filed in March 2023, Green United allegedly roped in $18 million by selling “Green Boxes,” promising to mine Ethereum-based GREEN tokens. Turns out, the tech couldn’t mine a thing, according to the SEC. These so-called GREEN tokens couldn’t be mined in the first place, and regulators are calling this another one of those “garden variety fraud” cases.

GREEN Mining? Not So Much.

The case, however, seems to be more about good ol’ fraud than some grand crypto conspiracy, according to Ishmael Green, a partner at Diaz Reus. “They took folks’ money, and those folks expected to see fat profits. This isn’t even a real crypto case,” he said.

Though this courtroom clash adds another notch to the SEC’s belt in their enforcement crusade, some argue it’s more of a sideshow compared to heavyweights like Coinbase and Ripple. “This case? Nah, it’s small potatoes,” Terrence Yang, Swan Bitcoin’s strategic advisor, chimed in. The denial of Green United’s motion to dismiss means the case will play out in federal court.

Fake Mining, Real Problems

The SEC claims that Green United painted a pretty picture for its customers, dropping GREEN tokens into their accounts as if real mining was happening. In truth, the GREEN tokens weren’t mined at all. They were just plopped in accounts to mimic real mining activity. The SEC isn’t buying it, and they’re dragging the firm through the courts over the deception. They also argue these “Green Boxes” and their accompanying software might qualify as a securities investment.

Green United, naturally, denies all this. They hit back, calling the SEC’s case a gross misunderstanding, especially when it comes to hosted mining services. In a statement, the firm claimed they gave refunds, but barely anyone wanted one.

For now, the legal smackdown continues, and the crypto world watches closely. The judge’s rejection of the dismissal isn’t an endorsement of the SEC’s case, but it keeps the wheels turning.