TITLE: United States Securities and Exchange Commission Charges Bitcoin Latinum Founder with Defrauding Investors in $16 Million Securities Offering
BODY:
On April 17, 2026, the Securities and Exchange Commission (SEC) filed a civil enforcement action in the United States District Court for the Eastern District of New York against Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation, charging them with defrauding hundreds of investors in a $16 million securities offering.
According to the SEC's complaint, Basile offered and sold Simple Agreements for Future Tokens (SAFTs) purporting to give investors rights to receive a cryptocurrency asset called "Bitcoin Latinum" (LTNM) at a future date. The SEC alleges that Basile made multiple false and misleading statements about LTNM and the offering, both directly to investors and through the two affiliated entities. Specifically, Basile falsely claimed that LTNM was "insured" and "the world's first insured digital asset" with up to $1 billion coverage, despite no insurance company ever issuing a policy. He also falsely represented that LTNM was "asset-backed" and secured by an "existing trust," when no such trust or asset pool existed. Additionally, Basile allegedly misrepresented that 80 percent or more of offering proceeds would support LTNM's underlying value, when he actually used millions in investor funds for personal benefit, including real estate purchases, personal credit card payments, and purchasing a $160,000 horse.
The SEC charges Basile with violations 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. GIBF and Monsoon face charges under Section 17(a)(2) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5(b). The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, a conduct-based injunction prohibiting participation in securities issuance or sale, and an officer-and-director bar against Basile.
REFERENCES:
https://www.sec.gov/litigation/litreleases/2026/lr26530.htm