SEC Secures $1.1 Million Judgment in Crypto Fraud Case Against Keith Crews

A federal judge has ordered Keith Crews to pay over $1.1 million in penalties for defrauding investors through an affinity fraud scheme involving a digital token called "Stemy Coin." The U.S. District Court for the Northern District of Georgia issued a default judgment after Crews failed to respond to the SEC's allegations.

The ruling includes disgorgement of $530,000 in illicit profits, $51,000 in prejudgment interest, and an equal civil penalty. Crews allegedly raised $800,000 from 200 investors between 2019-2021 through email campaigns, phone solicitations, and a network of promoters.

This case underscores the SEC's continued crackdown on fraudulent crypto offerings. The permanent injunction bars Crews from future securities violations, serving as a warning to similar bad actors in the digital asset space.