SEC lawsuit targets Bitcoin Latinum scheme after $16M raised

The U.S. SEC has filed a lawsuit against Donald Basile and related entities over an alleged crypto fundraising scheme tied to Bitcoin Latinum. The SEC claims the operation raised about $16M from hundreds of investors via SAFTs (Simple Agreements for Future Tokens) between March and December 2021, promising future token delivery. A central allegation is that Bitcoin Latinum was marketed as “insured,” with claims of protection coverage said to reach up to $1B. The SEC disputes any real insurance or verification existed, saying the “insured” statements were misleading. The SEC also alleges investor money was not used as represented. While Basile reportedly said 80% of funds would support the token’s value, the complaint alleges millions were diverted to personal spending, including high-end real estate, credit card payments, and a $160,000 horse purchase. Regulators are seeking repayment with interest, civil penalties, and a ban restricting Basile from serving in management roles or participating in future securities offerings. For traders, the case increases scrutiny around “insured” or asset-backed crypto narratives, and it can raise risk premiums for similar token claims—especially those promoted through SAFT structures involving Bitcoin-related marketing like Bitcoin Latinum.