The SEC sued Donald Basile and two companies he controlled, alleging they raised about $16 million from hundreds of investors (Mar–Dec 2021) by selling SAFTs for a claimed “insured,” asset-backed token called Bitcoin Latinum. The complaint says no insurer provided coverage or proof of backing and alleges millions were diverted to personal spending (real estate, credit cards and a $160,000 horse). The SEC seeks permanent injunctions, disgorgement with interest, civil penalties, a ban on Basile’s participation in securities offerings and an officer-and-director bar. The Bitcoin Latinum website returns a 404; the case is noted as part of the SEC’s current enforcement focus under Chair Paul Atkins.

SEC filed suit alleging $16M raised via SAFTs for a purportedly “insured” Bitcoin Latinum token with no insurer proof and that millions were diverted to personal spending; SEC seeks injunctions, disgorgement, penalties and industry bans — facts that create direct legal and financial risk for the token and investors.