FRAUDSTER BUYS $160,000 HORSE WITH INVESTOR CASH!

SEC v. Donald G. Basile, GIBF GP, Inc., Monsoon Blockchain Corporation — U.S. Securities and Exchange Commission Litigation Release No. 26530, dated April 17, 2026.

The SEC charged Donald G. Basile and two companies he controlled with defrauding investors in a $16 million offering of "Simple Agreements for Future Tokens" (SAFTs). Basile allegedly made false claims about the value and insurance of a crypto asset called "Bitcoin Latinum" (LTNM). Instead of using funds for development, Basile allegedly used millions for personal expenses like real estate and luxury goods.

In Plain English

Imagine someone promised to sell you a special collectible coin in the future, saying it was insured for a lot of money and backed by a hidden treasure. They asked for $16 million from many people. But, they lied: the coin wasn't insured or backed by treasure. Instead, the person took the money and bought fancy houses, paid their credit card bills, and even bought a horse.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. The Promise of Bitcoin Latinum From March to December 2021, Donald G. Basile, through entities GIBF GP, Inc. and Monsoon Blockchain Corporation, offered investors "Simple Agreements for Future Tokens" (SAFTs). These SAFTs purported to give investors the right to receive a crypto asset called "Bitcoin Latinum" (LTNM) in the future.
2. False Insurance Claims Basile repeatedly told investors that LTNM "is [] insured" and "is the world’s first insured digital asset" with "up to $1 billion coverage." These claims were false; no insurance policy was ever issued for LTNM or the offering.
3. Non-Existent Asset Backing Investors were also misled into believing LTNM was "an asset-backed cryptocurrency" secured by an "existing trust" or "underlying trust fund." In reality, no such trust or asset pool was ever created, and LTNM was not backed by any assets.
4. Misleading Use of Proceeds Basile falsely claimed that "80% or more" of the SAFT Offering proceeds would be "used to support the underlying value" of LTNM or go "into an underlying fund." He also claimed funds would "flow back into LNTM [sic] to support token development."
5. Personal Enrichment Instead of supporting LTNM, Basile used millions of investor funds for his personal benefit. This included approximately $4.1 million for a condominium in Miami, $2.8 million for a house in Park City, Utah, and about $1.4 million on his personal credit card.
6. Luxury Purchases Further demonstrating the personal use of funds, Basile also purchased a $160,000 horse for his daughter with investor money, directly contradicting his promises about how the $16 million raised would be utilized.
7. Investor Loss Ultimately, Basile stopped promoting LTNM, leaving the crypto asset valueless. Hundreds of investors lost their entire investment as a result of the alleged fraud.

The Enforcement Action

On April 17, 2026, the SEC charged Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation with defrauding hundreds of investors in a $16 million securities offering of "Simple Agreements for Future Tokens" (SAFTs). The SEC alleges Basile made false and misleading statements about the crypto asset "Bitcoin Latinum" (LTNM), claiming it was insured and asset-backed when it was not. The SEC further alleges Basile misappropriated millions in investor funds for personal use, including real estate purchases and luxury goods. The SEC seeks permanent injunctive relief, disgorgement with prejudgment interest, civil penalties, and an officer-and-director bar against Basile.

Named in this action: Donald G. Basile, GIBF GP, Inc., Monsoon Blockchain Corporation.

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