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Bitcoin Latinum founder Donald G. Basile is facing federal fraud charges brought by the U.S. Securities and Exchange Commission (SEC), according to a complaint filed on April 17, 2026, in the Eastern District of New York.
The SEC alleges that Basile and two companies raised $16 million from hundreds of American investors through fraudulent crypto offerings. The regulator says the case centers on false statements about insurance coverage, whether the token was backed by assets, and how investor funds would be used.
The SEC’s complaint focuses on the sale of Simple Agreements for Future Tokens (SAFTs). Under the alleged scheme, investors were promised the right to receive a crypto asset called Bitcoin Latinum (LTNM). The offering was conducted through GIBF GP, Inc. and Monsoon Blockchain Corporation, with the campaign launched in 2020 and attracting hundreds of investors across the United States.
According to the SEC, Basile repeatedly told investors that LTNM was the world’s first insured digital asset, with coverage of up to $1 billion. The regulator alleges these claims were made both directly to investors and through Basile’s companies, while no insurance company ever issued such a policy. The SEC further alleges that no coverage was in place for LTNM or any part of the SAFT offering.
The complaint also alleges that Basile represented LTNM as an asset-backed cryptocurrency and claimed that an existing trust secured the token’s value on behalf of investors. The SEC says no such trust or asset pool was ever created, characterizing the statements as intended to give the project false legitimacy.
In addition, the SEC alleges Basile promised that 80% or more of the proceeds would be used to support the underlying value of LTNM or would be placed into an underlying fund. Instead, the regulator says millions were used for personal expenses, including real estate purchases and credit card payments. The SEC also alleges that investor funds were used to buy a $160,000 horse. The token later became worthless, leaving investors with major losses.
The SEC charged Basile under Section 17(a) of the Securities Act of 1933 for anti-fraud violations. The complaint also cites Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. GIBF and Monsoon face charges under Section 17(a)(2) and related exchange act provisions, and the SEC alleges Basile aided and abetted the violations by both companies.
The SEC is seeking permanent injunctive relief against all three defendants. The regulator is also requesting disgorgement of ill-gotten gains, along with prejudgment interest, and civil penalties. A conduct-based injunction is also sought to bar the defendants from future securities activities.
In addition, the SEC is pursuing an officer-and-director bar aimed at Basile, which would prevent him from serving in any leadership role at a public company.
According to the complaint, litigation is being led by Brockett, Flath, and Rodriguez from the SEC’s New York Regional Office. Supervision is under Jack Kaufman of the same office.
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