SEC Charges Two in $60M Crypto Fraud Spree Over Three Days

The Securities and Exchange Commission charged Donald G. Basile and associated entities on April 18, 2026, with securities fraud in a $16 million Simple Agreement for Future Tokens (SAFT) offering for a cryptocurrency called Bitcoin Latinum (LTNM). Basile allegedly falsely claimed LTNM was insured for up to $1 billion, a guarantee that did not exist.

That same day, the SEC charged Sudheesh Nambiar, a Milpitas, California investment adviser, with orchestrating a Ponzi-like scheme that raised approximately $43 million from over 400 investors between November 2018 and May 2024. Nambiar promised annual returns of 24% to 48% using fabricated performance data.

The charges follow a $2 million-plus judgment against Spartan Trading entered April 16. Together, the three cases total more than $60 million in alleged fraud. Retail investors seeking high-yield crypto opportunities remain primary targets for such schemes, which often exploit the absence of clear regulatory oversight in digital asset markets.