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SEC charges Bitcoin Latinum founder over alleged $16M investor fraud
SEC seeks harsh penalties for misuse of investor funds in fraudulent token scheme.
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Add us on Google by Vivian Nguyen Apr. 18, 2026The US SEC brought enforcement action against Donald G. Basile and his companies, GIBF GP, Inc. and Monsoon Blockchain Corporation, over a $16 million crypto securities offering tied to Bitcoin Latinum (LTNM), which Basile launched in 2020.
According to the SEC, Basile, through GIBF and Monsoon, sold Simple Agreements for Future Tokens (SAFTs), promising future delivery of a token called Bitcoin Latinum, which ultimately failed.
Regulators claim Basile misrepresented key aspects of the project, including nonexistent insurance coverage, false claims of asset backing, and misleading statements about how investor funds would be used to support the token ecosystem.
The SEC also alleges that rather than using investor funds as promised, the entrepreneur misappropriated millions for personal uses, including real estate purchases, credit card payments, and a high-value horse.
The project ultimately failed. LTNM was never properly launched or listed on major exchanges, activity ceased, and the token became worthless, leaving investors with major losses.
The SEC charges GIBF and Monsoon with violating the anti-fraud provisions of federal securities laws and that Basile is directly liable as well as responsible for aiding the violations.
The SEC is seeking permanent injunctions, repayment of ill-gotten gains with interest, civil penalties, and a ban preventing Basile from serving as an officer or director of a public company, along with other equitable remedies.
Disclosure: This article was edited by Vivian Nguyen. For more information on how we create and review content, see our Editorial Policy.
