In April 2026, the SEC filed a complaint against Donald Basile and two entities he controlled, alleging fraud in a $16 million SAFT offering tied to a token called Bitcoin Latinum. The complaint alleges Basile falsely claimed the token was insured for up to $1 billion, when no such policy existed, and falsely claimed the token was backed by an existing trust, when the SEC alleges no trust was created. It further alleges that a substantial share of investor funds, which were represented as supporting the token’s value, were instead used for personal expenses.
This matter is at a very early stage. No findings have been made, and Basile has not yet had the opportunity to respond in court. We’re flagging it here because the pattern it describes, specific, reassuring claims about insurance and asset-backing, is one we test for directly in our own assessment process, not because any conclusion can currently be drawn about this particular matter.
We’ll follow this one as it develops.