The Securities and Exchange Commission has charged Australian citizen Craig Sproule, as well as the two startups he founded, Crowd Machine, Inc. and Metavine, Inc, for misleading investors about how he is going to use the proceeds of a $41 million initial coin offering (ICO) back in 2018.
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The SEC’s lawsuit, which was filed in the United States District Court for the Northern District of California, charges Sproule and Crowd Machine with violating antifraud and registration provisions in the federal securities laws.
Sproule has taken to calling himself the “Man behind the Machine,” and claimed to have raised $40.7 million through his companies, collectively referred to as “Crowd Machine,” in an initial coin offering of Crowd Machine Compute Tokens between January and April 2018, according to the SEC.
The SEC alleges that Sproule initially told investors that the ICO earnings would be used to develop a new technology that would enable Metavine’s existing application-development software to run on a decentralized network of users’ own computers.
Credit to @ thestreet
