SEC Secures $1.1 Million Judgment in Crypto Fraud Case

According to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) achieved a significant legal victory with a $1.1 million judgment against Keith Crews, who was accused of orchestrating a cryptocurrency scam. A federal judge in Georgia issued a default judgment on June 3, 2025, after Crews failed to respond to the SEC's lawsuit filed in August 2023. Judge Tiffany Johnson ordered Crews to pay over $1.1 million in financial penalties, including disgorgement of $530,000 in net profits from his alleged misconduct, prejudgment interest of nearly $51,000, and a civil penalty of $530,000. Additionally, Crews is permanently prohibited from future violations of securities laws. The SEC's allegations against Crews centered on his activities through companies Four Square Biz and Stem Biotech, where he allegedly conducted a fraudulent crypto scheme between October 2019 and May 2021. The regulator claimed Crews raised at least $800,000 from around 200 investors by selling a supposed crypto asset security named "Stemy Coin." Many investors were reportedly solicited through connections within African-American and church communities. The SEC accused Crews of misleading investors with false claims that the token was backed by stem cell technology and tangible assets like gold, and that his company had operational labs, products, and a history of delivering stem cell treatments. Further allegations from the SEC highlighted Crews's deceptive practices, including promoting non-existent partnerships with doctors and research teams. The agency asserted that Crews and his entities lacked any stem cell technology, products, operations, or partnerships with the claimed entities. The complaint detailed violations of several federal securities laws, including fraud provisions of the Securities Act and Exchange Act, as well as registration violations. This judgment marks a notable success for the SEC in its crypto enforcement efforts, which have seen a reduction under U.S. President Donald Trump's administration this year.