Key Takeaways:
The SEC has obtained a $1.1 million judgment against Keith Crews in a cryptocurrency fraud case. Crews is now permanently barred from any future violations of federal securities laws. Central to the case were misleading claims regarding “Stemy Coin” and stem cell technology.
The U.S. Securities and Exchange Commission (SEC) has successfully secured a judgment amounting to $1.1 million in a cryptocurrency fraud case after the accused did not respond to the agency’s lawsuit. A federal judge in Georgia issued a default judgment on June 3 against Keith Crews, who was alleged to have orchestrated a fraudulent cryptocurrency scheme and failed to appear in court to defend himself. The SEC initiated the lawsuit in August 2023.
Judge Tiffany Johnson mandated that Crews pay more than $1.1 million, which includes approximately $530,000 in disgorged profits, around $51,000 in prejudgment interest, and a civil penalty of $530,000.
Court Permanently Bars Crews From Future Securities Law Violations
The court’s ruling additionally bars Crews from any future violations of federal securities regulations.
The SEC’s complaint detailed that Crews conducted the scheme through two businesses, Four Square Biz and Stem Biotech, from October 2019 to May 2021. The agency asserted that he raised a minimum of $800,000 from approximately 200 investors by promoting a cryptocurrency asset called “Stemy Coin.”
Many of the investors were reportedly recruited through personal connections within African-American and church communities.
Regulators accused Crews of making false representations about Stemy Coin, claiming it was supported by stem cell technology, gold, and other tangible assets. He allegedly stated that his firms operated labs, developed products, and forged partnerships with medical professionals.
However, the SEC determined that these assertions were completely unfounded. “Crews and his entities had no existing stem cell technology, products, or operations, and there were no partnerships with the alleged entities,” the agency confirmed in its filing.
The case involved several breaches of federal securities laws, including provisions related to fraud and registration outlined in the Securities Act and the Exchange Act.
This judgment marks a notable victory for the SEC in a cryptocurrency-related court case, especially as the agency has scaled back its enforcement efforts throughout 2023.
SEC Shifts Its Stance on Crypto
Under President Donald Trump’s administration, the SEC has indicated a shift towards a more crypto-friendly regulatory environment for digital assets. Trump has maintained a pro-crypto position during his campaign and appointed former SEC Commissioner Paul Atkins to lead the agency.
Atkins is anticipated to adopt a significantly less aggressive approach towards blockchain regulation than his predecessor, Gary Gensler, who was known for his stringent enforcement policies.
SEC CHAIR PAUL ATKINS:
“THE CRYPTO MARKETS HAVE BEEN LANGUISHING IN SEC LIMBO FOR YEARS.
THE SEC SHOULD NOT FEAR INNOVATION. RATHER, IT SHOULD EMBRACE AND CHAMPION IT.”
COULD NOT AGREE MORE!!!
pic.twitter.com/tOEC49X8xt
— Kyle Chassé / DD (@kyle_chasse) May 19, 2025
The agency has already retracted its lawsuits against Coinbase and Cumberland DRW this year and concluded a separate investigation into Uniswap Labs without taking enforcement action as of February. Additionally, the SEC wrapped up its investigation into CyberKongz, a prominent Ethereum-based NFT and gaming project, without any enforcement proceedings. More recently, it decided not to pursue further legal action against Richard Schueler, known as Richard Heart, the founder of Hex, PulseChain, and PulseX.
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