SEC v. Basile et al. - $16M Crypto Token Fraud (SAFTs)

Donald G. Basile, GIBF GP, Inc, and Monsoon Blockchain Corporation

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26530 / April 17, 2026

Securities and Exchange Commission v. Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation, No. 1-26‑cv‑02293 (E.D.N.Y. filed Apr. 17, 2026)

SEC Charges Bitcoin Latinum Founder and Affiliated Companies with Allegedly Defrauding Investors in $16 Million Securities Offering

On April 17, 2026, the Securities and Exchange Commission charged Donald G. Basile and two entities he controlled—GIBF GP, Inc. and Monsoon Blockchain Corporation—with allegedly defrauding hundreds of investors across the United States in a $16 million securities offering of “Simple Agreements for Future Tokens” (SAFTs) that purported to give investors the right to receive a crypto asset that Basile called “Bitcoin Latinum” or “LTNM” at a future point.

According to the complaint, filed in United States District Court for the Eastern District of New York, Basile offered and sold the SAFTs as securities and made several false and misleading statements about LTNM and the SAFT Offering both directly to investors and through GIBF and Monsoon. As alleged, Basile repeatedly and falsely claimed that LTNM “is [] insured” and “is the world’s first insured digital asset” with “up to $1 billion coverage,” when, in fact, no insurance company ever issued a policy or otherwise insured LTNM or any other part of the SAFT Offering. The complaint further alleges that Basile falsely claimed that LTNM “is an asset‑backed cryptocurrency” and that an “existing trust” secured LTNM’s value, even though no such trust or asset pool was ever created. Basile also allegedly misled investors by falsely claiming that 80% or more of the SAFT Offering proceeds would be “used to support the underlying value “ of LTNM or would go “into an underlying fund,” while, in reality, Basile used millions in investor funds for his personal benefit, including to make real estate purchases, to make payments on his personal credit card, and to buy a $160,000 horse.

The complaint charges Basile with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b‑5 thereunder. It charges GIBF and Monsoon with violating the antifraud provisions of Section 17(a)(2) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b‑5(b) thereunder. The complaint further charges Basile with aiding and abetting GIBF’s and Monsoon’s violations. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and a conduct‑based injunction from participating in the issuance, purchase, offer, or sale of any security except for certain transactions for their personal accounts against all defendants as well as an officer-and-director bar against Basile.

The SEC’s investigation was conducted by Nicholas Flath, Teresa A. Rodriguez, Hayden M. Brockett, and Jordan Baker, and was supervised by Wendy B. Tepperman and Sheldon L. Pollock, all of the SEC’s New York Regional Office. The litigation will be led by Mr. Brockett, Mr. Flath, and Ms. Rodriguez and supervised by Jack Kaufman.

SEC Complaint

Resources

• SEC Complaint