{"investigation":{"slug":"monsoon-blockchain-corporation","entity_name":"Monsoon Blockchain Corporation","trust_score":4,"severity_base":null,"score_modifier":0,"confidence":0.88,"status":"published","content_type":"investigation","summary":"Monsoon Blockchain Corporation is a Palo Alto, California-based blockchain company founded and led by Dr. Donald G. Basile, also the founder of the Bitcoin Latinum (LTNM) token. On April 17, 2026, the U.S. Securities and Exchange Commission filed a civil complaint in the Eastern District of New York naming Monsoon Blockchain Corporation as a co-defendant alongside Basile and GIBF GP, Inc., alleging the three parties collectively raised approximately $16 million from hundreds of investors through the fraudulent sale of Simple Agreements for Future Tokens (SAFTs) predicated on false claims of insurance coverage and asset backing. The allegations have not been adjudicated; all charges remain accusations at the civil complaint stage.","sections":[{"content":"Monsoon Blockchain Corporation is headquartered at 2100 Geng Road, Palo Alto, California 94303. Dr. Donald G. Basile has served as its CEO and founder since at least November 2019, according to filings associated with the Roman DBDR SPAC. The company publicly positioned itself as 'an innovative blockchain company' and described its mission as developing blockchain technologies and business solutions for industries including gaming, financial services, telecommunications, media and entertainment, and cloud/data storage. As of September 2021, Monsoon Blockchain described itself publicly as 'the prime developer of the Bitcoin Latinum network on behalf of the Bitcoin Latinum Foundation.' A September 2021 GlobeNewswire press release issued by the company stated that Monsoon Blockchain serves industries including gaming, financial services, and media and entertainment, and that it was overseeing the development and adoption of the Bitcoin Latinum ecosystem. Basile's prior career included serving as CEO of Fusion-IO, which worked with Apple and Facebook, and as Co-CEO and Chairman of Roman DBDR Tech Acquisition Corp., a NASDAQ-listed SPAC that raised $236 million in 2020 and subsequently completed a merger with CompoSecure (Nasdaq: CMPO), a payment card technology company.","heading":"Corporate Background","sources":[{"url":"https://www.globenewswire.com/news-release/2021/09/28/2304425/0/en/Monsoon-Blockchain-Powers-the-Next-Generation-Cryptocurrency-Ecosystem-for-Bitcoin-Latinum.html","name":"Monsoon Blockchain Powers the Next Generation Cryptocurrency Ecosystem for Bitcoin Latinum (GlobeNewswire, Sept. 28, 2021)","type":"other","credibility":3},{"url":"https://www.romandbdr.com/team-members/dr-donald-basile-rq0g7","name":"Dr. Donald Basile — Roman DBDR Team Profile","type":"official","credibility":2}],"severity":"medium"},{"content":"On April 17, 2026, the SEC filed a civil complaint in the U.S. District Court for the Eastern District of New York (Case No. 1:26-cv-02293) against Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation. The complaint alleges that from approximately March through December 2021, the defendants collectively raised approximately $16 million from hundreds of investors in the United States and abroad through the sale of Simple Agreements for Future Tokens (SAFTs) tied to a digital asset called Bitcoin Latinum (ticker: LTNM). The SEC's litigation release identifies the defendants at SEC litigation release LR-26530. According to the complaint, Monsoon Blockchain Corporation allegedly had a contractual right to receive the first $50 million of SAFT offering proceeds from co-defendant GIBF GP, Inc., less GIBF's expenses and a monthly fee of $100,000, making Monsoon a direct financial beneficiary of the alleged fundraise. The SEC charges Monsoon Blockchain Corporation with violating the antifraud provisions of Section 17(a)(2) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b) thereunder. Basile is separately charged with aiding and abetting GIBF's and Monsoon's violations. The SEC seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, an officer-and-director bar against Basile, and a ban on Basile's future participation in securities offerings. These are civil allegations; no court has entered a judgment or finding of liability against any defendant as of the date of this report.","heading":"SEC Enforcement Action","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 (SEC.gov, April 17, 2026)","type":"regulatory","credibility":1},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26530.pdf","name":"SEC Civil Complaint, Case No. 1:26-cv-02293 (E.D.N.Y., April 17, 2026)","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 (InvestmentNews, April 2026)","type":"news_article","credibility":2}],"severity":"critical"},{"content":"The SEC complaint alleges that Basile, operating through Monsoon Blockchain Corporation and GIBF GP, Inc., made multiple material misrepresentations to SAFT purchasers. According to the SEC, Basile repeatedly claimed that Bitcoin Latinum (LTNM) was 'the world's first insured digital asset' with 'up to $1 billion coverage' from an international insurance broker and risk advisor. The SEC alleges that no insurance company ever issued a policy or otherwise insured LTNM or any part of the SAFT offering. The SEC further alleges that Basile represented LTNM as an 'asset-backed cryptocurrency' secured by an 'existing trust' holding a diversified portfolio of digital assets such as Bitcoin and Ethereum, and that no such trust, fund, or pool was ever created. The complaint also alleges that investors were falsely told that 80% or more of SAFT proceeds would be used to support the underlying value of LTNM. Separately, a 2022 Forbes report noted that investors alleged in private litigation that Basile claimed the project had received '$20 million from the producers of Star Trek,' a claim that investors alleged was false. These are the SEC's allegations and investor claims as stated in filings; they have not been established in court.","heading":"Alleged Misrepresentations to Investors","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530","name":"SEC Litigation Release LR-26530 (SEC.gov, April 17, 2026)","type":"regulatory","credibility":1},{"url":"https://cryptobriefing.com/sec-charges-fraud-bitcoin-latinum/","name":"SEC charges Bitcoin Latinum founder over alleged $16M investor fraud (Crypto Briefing, April 2026)","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 (CryptoTimes, April 18, 2026)","type":"news_article","credibility":2}],"severity":"critical"},{"content":"The SEC complaint alleges that rather than deploying investor funds as represented, proceeds from the SAFT offering were diverted to personal expenditures. According to the SEC, the specific diversions alleged include approximately $4.1 million used to purchase real estate in Miami, approximately $2.8 million used to purchase property in Utah, approximately $1.4 million applied to Basile's personal American Express credit card bill, and approximately $160,000 spent on a horse for Basile's daughter. The SEC alleges that these personal expenditures were made in lieu of the promised allocation of 80% or more of proceeds to support LTNM's value. These are allegations contained in an unadjudicated civil complaint; no court has made findings of fact or entered judgment.","heading":"Alleged Misappropriation 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 (InvestmentNews, April 2026)","type":"news_article","credibility":2},{"url":"https://blockonomi.com/sec-charges-bitcoin-latinum-founder-donald-basile-with-16-million-investor-fraud/","name":"SEC Charges Donald Basile in $16M Bitcoin Latinum Crypto Fraud Case (Blockonomi, April 2026)","type":"news_article","credibility":2},{"url":"https://news.bloomberglaw.com/crypto/crypto-executive-misled-investors-on-digital-currency-sec-says","name":"Crypto Executive Misled Investors on Digital Currency, SEC Says (Bloomberg Law, April 2026)","type":"news_article","credibility":1}],"severity":"critical"},{"content":"Before the SEC action, Bitcoin Latinum and related parties faced a private civil lawsuit filed on February 1, 2022 in the U.S. District Court for the Eastern District of Michigan (Case No. 2:22-cv-10208). The plaintiffs — Raymond Jonna, Simon Jonna, and Farid Jamardov — alleged they invested several hundred thousand dollars (the complaint alleged at least $540,000 in unregistered securities) in late 2021 and were unable to withdraw funds or receive tokens. The suit named Bitcoin Latinum and Kevin Jonna, a sales agent, alleging securities fraud, wire fraud, and fraudulent conversion of investment funds. A separate press release covered by StreetInsider stated the lawsuit alleged Bitcoin Latinum and Kevin Jonna offered and sold unregistered securities through a pre-sale on the Bitcoin Latinum website and directly to individual investors. The Sixth Circuit subsequently rejected Bitcoin Latinum's attempt to compel arbitration, keeping the case in open court. The status of this private litigation as of the date of this report has not been separately confirmed with a current docket check; readers should verify current case status through PACER. Monsoon Blockchain Corporation is not identified as a named defendant in the Jonna lawsuit based on available reporting.","heading":"Prior Private Litigation — Jonna v. Bitcoin Latinum","sources":[{"url":"https://dockets.justia.com/docket/michigan/miedce/2:2022cv10208/359650","name":"Jonna et al v. Bitcoin Latinum et al, No. 2:2022cv10208 (E.D. Mich.) — Justia Docket","type":"court_filing","credibility":1},{"url":"https://www.cryptocurrencywire.com/bitcoin-latinum-named-in-civil-lawsuit-alleging-securities-fraud-wire-fraud-and-fraudulent-conversion-of-investment-funds/","name":"Bitcoin Latinum Named in Civil Lawsuit Alleging Securities Fraud, Wire Fraud, and Fraudulent Conversion of Investment Funds (StreetInsider / CryptoCurrencyWire, Feb. 2022)","type":"news_article","credibility":2},{"url":"https://news.bloomberglaw.com/litigation/bitcoin-latinum-cant-send-securities-fraud-case-to-arbitration","name":"Bitcoin Latinum Can't Send Securities Fraud Case to Arbitration (Bloomberg Law)","type":"news_article","credibility":1},{"url":"https://www.poker.org/phil-hellmuth-endorsed-altcoin-bitcoin-latinum-accused-of-securities-fraud/","name":"Phil Hellmuth-endorsed altcoin Bitcoin Latinum accused of securities fraud (Poker.org, 2022)","type":"news_article","credibility":2}],"severity":"high"},{"content":"According to reporting by InvestmentNews and Blockonomi, the Bitcoin Latinum token price fell from approximately $200 to under $16 by late January 2022, and the token ultimately became worthless, with 'many investors los[ing] everything.' Available price trackers as of mid-2026 show the token trading at fractions of a dollar. Monsoon Blockchain Corporation, as the self-described 'prime developer of the Bitcoin Latinum network,' promoted the token through press releases during the period when the SAFT offering was active (March through December 2021) and organized public-facing events including a Miami Art Basel metaverse party in December 2021. The collapse of LTNM's price, the non-delivery of promised token utility, and the alleged diversion of proceeds are the primary bases for the investor harm described in both the SEC complaint and the private Jonna litigation.","heading":"Token Performance and Investor Harm","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 (InvestmentNews, April 2026)","type":"news_article","credibility":2},{"url":"https://www.globenewswire.com/news-release/2021/09/28/2304425/0/en/Monsoon-Blockchain-Powers-the-Next-Generation-Cryptocurrency-Ecosystem-for-Bitcoin-Latinum.html","name":"Monsoon Blockchain Powers the Next Generation Cryptocurrency Ecosystem for Bitcoin Latinum (GlobeNewswire, Sept. 28, 2021)","type":"other","credibility":3}],"severity":"high"},{"content":"During the SAFT offering period in 2021, Bitcoin Latinum and Monsoon Blockchain Corporation engaged in active marketing that included celebrity associations. Poker player Phil Hellmuth wore Bitcoin Latinum-branded merchandise throughout the 2021 World Series of Poker and described himself in a July 2021 tweet as a 'paid endorser.' Poker pro Brandon Cantu attended a Bitcoin Latinum launch party in September 2021. MMA fighters Jorge Masvidal, Paige VanZant, and Anthony Pettis were associated with Bitcoin Latinum events. These celebrity associations were part of the public-facing marketing of the Bitcoin Latinum project during the period the SEC identifies as the fraudulent offering window. No regulatory finding has been made that any of the named celebrities had knowledge of or participated in any alleged fraud.","heading":"Marketing and Celebrity Involvement","sources":[{"url":"https://www.poker.org/phil-hellmuth-endorsed-altcoin-bitcoin-latinum-accused-of-securities-fraud/","name":"Phil Hellmuth-endorsed altcoin Bitcoin Latinum accused of securities fraud (Poker.org, 2022)","type":"news_article","credibility":2},{"url":"https://www.einnews.com/pr_news/554544706/bitcoin-latinum-focuses-on-poker-s-blockchain-future","name":"Bitcoin Latinum Focuses on Poker's Blockchain Future (EIN Presswire)","type":"other","credibility":3}],"severity":"medium"},{"content":"As of the date of this report (September 2026), the SEC's civil action (Case No. 1:26-cv-02293, E.D.N.Y.) is at the complaint stage. No judgment, settlement, consent decree, or adjudicated finding of liability has been entered against Monsoon Blockchain Corporation, Donald G. Basile, or GIBF GP, Inc. The charges described in this report are allegations made by the SEC in a civil complaint. Under U.S. law, all defendants are presumed innocent of civil and criminal allegations unless and until a court makes a contrary finding. Readers should consult the PACER docket for the most current case status.","heading":"Current Legal Status and Caveats","sources":[{"url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530","name":"SEC Litigation Release LR-26530 (SEC.gov, April 17, 2026)","type":"regulatory","credibility":1}],"severity":"low"}],"timeline":[{"date":"2019-11-01","event":"Donald G. Basile begins serving as executive officer and director of Monsoon Blockchain Corporation.","source":"Roman DBDR Team Profile / GlobeNewswire press release","source_url":"https://www.globenewswire.com/news-release/2021/09/28/2304425/0/en/Monsoon-Blockchain-Powers-the-Next-Generation-Cryptocurrency-Ecosystem-for-Bitcoin-Latinum.html"},{"date":"2021-03-01","event":"SEC alleges the Bitcoin Latinum SAFT offering begins, with Monsoon Blockchain Corporation and GIBF GP, Inc. as co-fundraising entities targeting accredited investors under Regulation D.","source":"SEC Litigation Release LR-26530","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530"},{"date":"2021-09-28","event":"Monsoon Blockchain Corporation issues a GlobeNewswire press release announcing itself as 'the prime developer of the Bitcoin Latinum network' and describing planned ecosystem development across gaming, financial services, and media sectors.","source":"GlobeNewswire","source_url":"https://www.globenewswire.com/news-release/2021/09/28/2304425/0/en/Monsoon-Blockchain-Powers-the-Next-Generation-Cryptocurrency-Ecosystem-for-Bitcoin-Latinum.html"},{"date":"2021-12-01","event":"SEC alleges the Bitcoin Latinum SAFT offering closes, having raised approximately $16 million from hundreds of investors in the U.S. and abroad.","source":"SEC Litigation Release LR-26530 / InvestmentNews","source_url":"https://www.investmentnews.com/regulation-legal-compliance/sec-sues-crypto-founder-alleging-16m-token-fraud-built-on-phantom-insurance/266228"},{"date":"2022-01-01","event":"Bitcoin Latinum token price falls from approximately $200 to under $16 by late January 2022, according to reporting.","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":"Private civil lawsuit filed in U.S. District Court, Eastern District of Michigan (Case No. 2:22-cv-10208) by Raymond Jonna, Simon Jonna, and Farid Jamardov against Bitcoin Latinum and Kevin Jonna, alleging securities fraud, wire fraud, and fraudulent conversion of at least $540,000 in investment funds.","source":"Justia Docket / CryptoCurrencyWire","source_url":"https://dockets.justia.com/docket/michigan/miedce/2:2022cv10208/359650"},{"date":"2026-04-17","event":"SEC files civil complaint in the Eastern District of New York (Case No. 1:26-cv-02293) naming Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation as defendants, alleging a $16 million fraudulent SAFT offering involving false insurance and asset-backing claims.","source":"SEC Litigation Release LR-26530","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26530"}],"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","credibility":1},{"url":"https://www.sec.gov/files/litigation/complaints/2026/comp26530.pdf","name":"SEC Civil Complaint, Case No. 1:26-cv-02293 (E.D.N.Y., April 17, 2026)","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 (InvestmentNews, April 2026)","type":"news_article","credibility":2},{"url":"https://news.bloomberglaw.com/crypto/crypto-executive-misled-investors-on-digital-currency-sec-says","name":"Crypto Executive Misled Investors on Digital Currency, SEC Says (Bloomberg Law, April 2026)","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 (Crypto Briefing, April 2026)","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 (CryptoTimes, April 18, 2026)","type":"news_article","credibility":2},{"url":"https://blockonomi.com/sec-charges-bitcoin-latinum-founder-donald-basile-with-16-million-investor-fraud/","name":"SEC Charges Bitcoin Latinum Founder Donald Basile With $16 Million Investor Fraud (Blockonomi, April 2026)","type":"news_article","credibility":2},{"url":"https://www.globenewswire.com/news-release/2021/09/28/2304425/0/en/Monsoon-Blockchain-Powers-the-Next-Generation-Cryptocurrency-Ecosystem-for-Bitcoin-Latinum.html","name":"Monsoon Blockchain Powers the Next Generation Cryptocurrency Ecosystem for Bitcoin Latinum (GlobeNewswire, Sept. 28, 2021)","type":"other","credibility":3},{"url":"https://dockets.justia.com/docket/michigan/miedce/2:2022cv10208/359650","name":"Jonna et al v. 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