LEGAL iStock_000016406958SmallThe Securities and Exchange Commission (SEC) is seeking more than $10m from the cryptocurrency mining firms GAW Miners and ZenMiner in connection with its ongoing securities fraud suit.

The agency filed suit against the firms and former CEO Homero Josh Garza in December. The SEC sought a motion for entry of default against the firms last month.  Garza and the companies are accused of defrauding investors, and operating a Ponzi scheme in connection with its now-defunct mining service by selling more mining power than it actually possessed.

The SEC argued in its motion for default judgment, filed on 12th February, that Hashlets – mining contracts sold by GAW in 2014 through an internal market it maintained – constitute securities under the Securities Act and Exchange Act.

Source: Coindesk