SEC Charges Bitcoin Latinum Founder Donald Basile With $16 Million Investor Fraud

TLDR:

• The SEC charged Donald Basile and two companies over a fraudulent $16 million Bitcoin Latinum SAFT offering.
  
• Basile falsely claimed LTNM was the world’s first insured digital asset with up to $1 billion in coverage.
  
• Millions in investor funds were allegedly misused for real estate, credit card bills, and a $160,000 horse.
  
• The SEC is seeking disgorgement, civil penalties, permanent injunctions, and an officer-and-director bar against Basile.

Bitcoin Latinum founder Donald G. Basile now faces federal fraud charges from the U.S. Securities and Exchange Commission.

The SEC claims Basile and his two companies raised $16 million from hundreds of American investors through fraudulent crypto offerings.

Regulators filed the complaint on April 17, 2026, in the Eastern District of New York. The charges center on false claims about insurance, asset backing, and the intended use of investor funds.

Alleged Misrepresentations Behind the Bitcoin Latinum Offering

The case revolves around the sale of Simple Agreements for Future Tokens, or SAFTs. These instruments promised investors the right to receive a crypto asset known as Bitcoin Latinum, or LTNM.

Basile conducted the offering through GIBF GP, Inc. and Monsoon Blockchain Corporation. The campaign launched in 2020 and attracted hundreds of investors across the United States.

According to the SEC, Basile repeatedly told investors that LTNM “is the world’s first insured digital asset” with “up to $1 billion coverage.”

He made these claims both directly to investors and through his two companies. Regulators say no insurance company ever issued such a policy. No coverage was ever in place for LTNM or any part of the SAFT offering.

The complaint further alleges that Basile told investors LTNM “is an asset-backed cryptocurrency.” He also claimed that an “existing trust” secured the token’s value on behalf of investors.

However, regulators say no such trust or asset pool was ever created. These representations were made to give the project a false sense of legitimacy.

Beyond that, Basile allegedly promised that 80% or more of proceeds would be “used to support the underlying value” of LTNM or would go “into an underlying fund.”

Instead, he reportedly used millions for personal expenses, including real estate purchases and credit card payments. He also allegedly bought a $160,000 horse using investor funds. The token later became worthless, leaving investors across the country with major losses.

Charges Filed and Legal Remedies Sought Against Basile

The SEC charged Basile under Section 17(a) of the Securities Act of 1933 for anti-fraud violations. The complaint also cites Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.

GIBF and Monsoon face charges under Section 17(a)(2) and related exchange act provisions. The SEC further charges Basile with aiding and abetting the violations of both companies.

As a result, the regulator is seeking permanent injunctive relief against all three defendants. Disgorgement of ill-gotten gains with prejudgment interest forms part of the requested remedies.

Civil penalties are also being sought to address the alleged misconduct by Basile and his entities. A conduct-based injunction would additionally bar defendants from future securities activities.

The SEC is pursuing an officer-and-director bar specifically targeting Basile. This bar would prevent him from serving in any leadership role at a public company.

Litigation is being led by Brockett, Flath, and Rodriguez from the SEC’s New York Regional Office. Supervision of the case falls under Jack Kaufman of the same office.