{"investigation":{"slug":"donald-g-basile-bitcoin-latinum-fraud","entity_name":"Donald G. Basile / Bitcoin Latinum Fraud","trust_score":3,"severity_base":null,"score_modifier":0,"confidence":0.85,"status":"draft","content_type":"investigation","summary":"Donald G. Basile is a technology entrepreneur and the founder of Bitcoin Latinum (LTNM), a cryptocurrency token marketed in 2021 as 'the world's first insured digital asset.' On April 17, 2026, the U.S. Securities and Exchange Commission filed a civil fraud suit against Basile and two entities he controlled, GIBF GP, Inc. and Monsoon Blockchain Corporation, alleging he raised approximately $16 million from hundreds of investors via Simple Agreements for Future Tokens (SAFTs) using false claims of a $1 billion insurance policy and a diversified backing trust that never existed, and that he diverted more than 80% of investor funds to personal use. Basile and Bitcoin Latinum had also faced multiple private civil suits alleging securities fraud since 2022, predating the SEC action.","sections":[{"content":"On April 17, 2026, the SEC filed a civil complaint against Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation in the U.S. District Court for the Eastern District of New York (Case No. 1:26-cv-02293). The complaint alleges that between March and December 2021, Basile raised approximately $16 million from hundreds of investors in the U.S. and abroad through the sale of SAFTs entitling purchasers to future delivery of the Bitcoin Latinum (LTNM) token. The SEC alleges Basile falsely marketed LTNM as 'the world's first insured digital asset' with coverage of up to $1 billion, when no insurance company ever issued such a policy. The complaint further alleges Basile falsely claimed LTNM was 'asset-backed' via a diversified trust fund that was never created. The SEC charges Basile with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and charges GIBF and Monsoon with related antifraud and aiding-and-abetting violations. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and an officer-and-director bar against Basile. As a civil complaint, these are allegations that have not been adjudicated; no public response or denial from Basile has been located.","heading":"SEC Civil Fraud Suit (2026)","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530","name":"SEC Litigation Release LR-26530: Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation","type":"regulatory","credibility":1},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26530.pdf","name":"SEC Complaint, SEC v. Basile et al. (comp26530.pdf)","type":"court_filing","credibility":1},{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-sues-crypto-founder-alleging-16m-token-fraud-built-on-phantom-insurance/266228","name":"SEC hits crypto founder with fraud suit over $16M Bitcoin Latinum raise","type":"news_article","credibility":1},{"url":"https://www.law360.com/articles/2466988/sec-brings-fraud-suit-over-bitcoin-latinum-crypto-offering","name":"SEC Brings Fraud Suit Over Bitcoin Latinum Crypto Offering","type":"news_article","credibility":2}],"severity":"critical"},{"content":"The SEC complaint alleges that more than 80% of the approximately $16 million raised was diverted to Basile's personal use rather than to development or support of the LTNM token as represented to investors. Reported alleged personal expenditures include a Miami condominium purchase (approximately $4.1 million), a residence in Park City, Utah (approximately $2.8 million), personal American Express credit card charges (approximately $1.4 million), transfers to family and personal accounts (approximately $1 million), and a $160,000 horse purchase reportedly for Basile's daughter. These figures are drawn from SEC allegations and news reporting on the complaint and have not been independently adjudicated.","heading":"Alleged Misuse of Investor Funds","sources":[{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-sues-crypto-founder-alleging-16m-token-fraud-built-on-phantom-insurance/266228","name":"SEC hits crypto founder with fraud suit over $16M Bitcoin Latinum raise","type":"news_article","credibility":1},{"url":"https://dailyhodl.com/2026/04/29/crypto-founder-allegedly-masterminds-16000000-insured-coin-offering-splurges-on-luxury-homes-and-horse-sec/","name":"Crypto Founder Allegedly Masterminds $16,000,000 'Insured' Coin Offering, Splurges on Luxury Homes and Horse: SEC","type":"news_article","credibility":2},{"url":"https://www.cryptotimes.io/2026/04/18/sec-charges-donald-basile-in-16m-bitcoin-latinum-crypto-fraud-case/","name":"SEC Charges Donald Basile in $16M Bitcoin Latinum Crypto Fraud Case","type":"news_article","credibility":2}],"severity":"critical"},{"content":"Before the SEC's 2026 suit, Bitcoin Latinum and Basile were named in at least two private civil actions alleging securities fraud tied to the same token offering. A complaint captioned Jonna v. Bitcoin Latinum was filed February 1, 2022 in federal court in the Eastern District of Michigan, alleging that Bitcoin Latinum and an associated individual, Kevin Jonna, sold at least $540,000 in unregistered LTNM token securities to plaintiffs who say they received neither a refund nor tokens when they sought their money back. Separately, a complaint captioned Arshad Assofi v. Donald Basile was filed November 14, 2022 in the U.S. District Court for the Central District of California, alleging approximately $15 million in fraud-related claims tied to unregistered/unlicensed Bitcoin Latinum investment activity. These predate and are factually related to, but distinct from, the SEC's civil fraud suit.","heading":"Prior Private Civil Litigation (2022) Predating SEC Action","sources":[{"url":"https://www.streetinsider.com/Investor+Brand+Network/Bitcoin+Latinum+Named+in+Civil+Lawsuit+Alleging+Securities+Fraud,+Wire+Fraud,+and+Fraudulent+Conversion+of+Investment+Funds/19546803.html","name":"Bitcoin Latinum Named in Civil Lawsuit Alleging Securities Fraud, Wire Fraud, and Fraudulent Conversion of Investment Funds","type":"news_article","credibility":2},{"url":"https://us-arbitration.aoshearman.com/siteFiles/46590/2024.06.17%20Jonna%20v.%20Bitcoin%20Latinum,%20No.%2022-CV-10208-LJM-JJCG%20(E.D.%20Mich.%20June%2017,%202024).pdf","name":"Jonna v. Bitcoin Latinum, No. 22-CV-10208 (E.D. Mich.) filing","type":"court_filing","credibility":1},{"url":"https://www.offshorealert.com/arshad-assofi-v-donald-basile-complaint-15m-bitcoin-latinum-crypto-fraud/","name":"Arshad Assofi v. Donald Basile: Complaint ('$15M Bitcoin Latinum Crypto Fraud')","type":"court_filing","credibility":2},{"url":"https://blocktribune.com/judge-denies-bitcoin-latinums-motion-to-compel-arbitration-in-500k-crypto-lawsuit/","name":"Judge Denies Bitcoin Latinum's Motion to Compel Arbitration in $500K Crypto Lawsuit","type":"news_article","credibility":2}],"severity":"high"},{"content":"Bitcoin Latinum (LTNM) began trading on overseas exchanges in October 2021. According to reporting on the SEC complaint, the token's price fell from approximately $200 to under $16 by late January 2022, and it is now widely described as worthless, with investors alleged to have lost the entirety of their investment. The token never achieved major exchange listings, according to coverage of the SEC action.","heading":"Token Performance and Investor Losses","sources":[{"url":"https://www.investmentnews.com/regulation-legal-compliance/sec-sues-crypto-founder-alleging-16m-token-fraud-built-on-phantom-insurance/266228","name":"SEC hits crypto founder with fraud suit over $16M Bitcoin Latinum raise","type":"news_article","credibility":1},{"url":"https://cryptobriefing.com/sec-charges-fraud-bitcoin-latinum/","name":"SEC charges Bitcoin Latinum founder over alleged $16M investor fraud","type":"news_article","credibility":2}],"severity":"high"},{"content":"Before Bitcoin Latinum, Donald Basile was known in the technology sector as a co-founder, chairman, and CEO of enterprise storage companies Fusion-io and Violin Memory, both of which completed public listings on the NYSE. Basile holds a PhD in Electrical Engineering from Stanford University, according to promotional and biographical material published prior to the SEC action. This section reflects Basile's publicly stated professional background and is included for context; it is not itself an allegation of wrongdoing.","heading":"Background: Donald Basile's Prior Business History","sources":[{"url":"https://archive2.salt.org/speakers/donald-basile","name":"SALT — Dr. Donald Basile speaker biography","type":"other","credibility":3},{"url":"https://theorg.com/org/bitcoin-latinum/org-chart/donald-basile","name":"Donald Basile - Founder at Bitcoin Latinum | The Org","type":"other","credibility":3}],"severity":"low"}],"timeline":[{"date":"2021-03","event":"Alleged start of the SAFT offering period during which Basile, through GIBF GP and Monsoon Blockchain Corporation, began raising funds from investors for future delivery of Bitcoin Latinum (LTNM) tokens.","source":"SEC Litigation Release LR-26530","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530"},{"date":"2021-12","event":"Alleged end of the SAFT offering period; SEC alleges approximately $16 million was raised from hundreds of investors between March and December 2021.","source":"SEC Litigation Release LR-26530","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530"},{"date":"2021-10","event":"LTNM token reportedly began trading on overseas cryptocurrency exchanges at prices around $200.","source":"InvestmentNews","source_url":"https://www.investmentnews.com/regulation-legal-compliance/sec-sues-crypto-founder-alleging-16m-token-fraud-built-on-phantom-insurance/266228"},{"date":"2022-01","event":"LTNM token price reportedly collapsed to under $16, down from roughly $200 in October 2021.","source":"InvestmentNews","source_url":"https://www.investmentnews.com/regulation-legal-compliance/sec-sues-crypto-founder-alleging-16m-token-fraud-built-on-phantom-insurance/266228"},{"date":"2022-02-01","event":"Jonna v. Bitcoin Latinum civil complaint filed in the Eastern District of Michigan, alleging securities fraud, wire fraud, and fraudulent conversion of at least $540,000 in investment funds.","source":"StreetInsider / CryptoCurrencyWire","source_url":"https://www.streetinsider.com/Investor+Brand+Network/Bitcoin+Latinum+Named+in+Civil+Lawsuit+Alleging+Securities+Fraud,+Wire+Fraud,+and+Fraudulent+Conversion+of+Investment+Funds/19546803.html","date_evidence":"civil lawsuit filed on February 1, 2022 alleging securities fraud, wire fraud, and fraudulent conversion of investment funds"},{"date":"2022-11-14","event":"Arshad Assofi v. Donald Basile civil complaint filed in the U.S. District Court for the Central District of California, alleging approximately $15 million in fraud tied to unregistered Bitcoin Latinum investment activity.","source":"OffshoreAlert","source_url":"https://www.offshorealert.com/arshad-assofi-v-donald-basile-complaint-15m-bitcoin-latinum-crypto-fraud/","date_evidence":"Date Filed: November 14, 2022"},{"date":"2026-04-17","event":"SEC files civil fraud complaint against Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation in the U.S. District Court for the Eastern District of New York, alleging a $16 million fraudulent SAFT offering tied to Bitcoin Latinum.","source":"SEC Litigation Release LR-26530","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530","date_evidence":"Date Filed: \"April 17, 2026\""},{"date":"2026-04","event":"News outlets including CryptoTimes and Crypto Briefing report on the SEC's charges against Basile.","source":"CryptoTimes","source_url":"https://www.cryptotimes.io/2026/04/18/sec-charges-donald-basile-in-16m-bitcoin-latinum-crypto-fraud-case/","date_original":"2026-04-18"},{"date":"2026-04","event":"Follow-up reporting details the alleged personal expenditures of investor funds, including luxury real estate and a $160,000 horse purchase.","source":"The Daily Hodl","source_url":"https://dailyhodl.com/2026/04/29/crypto-founder-allegedly-masterminds-16000000-insured-coin-offering-splurges-on-luxury-homes-and-horse-sec/","date_original":"2026-04-29"}],"sources_used":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530","name":"SEC Litigation Release LR-26530: Donald G. Basile, GIBF GP, Inc, and Monsoon Blockchain Corporation","type":"regulatory","archive_url":"http://web.archive.org/web/20260629235156/https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530","credibility":1,"archive_timestamp":"2026-06-29T23:51:56+00:00"},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26530.pdf","name":"SEC Complaint, SEC v. Basile et al. 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