Yeliz Akmaca 
The SEC has secured a $1.1 million judgment in a crypto fraud lawsuit against Keith Crews. A Georgia federal court ruled in favor of theStemy Coin: Unveiling the Stem Cell Crypto Scam after Crews failed to respond to the charges in the case filed in August 2023. The fraudulent project, known as Stemy Coin, was marketed to investors as being backed by stem cell technology.
The court ordered Crews to return $530,000 in net profits. Additionally, Crews must pay approximately $51,000 in interest and a $530,000 civil penalty. He has also been permanently barred from violating securities laws. The SEC achieved this victory despite reduced crypto enforcement during the Trump administration. The agency claimed Crews operated a crypto fraud scheme through two entities, Four Square Biz and Stem Biotech, between October 2019 and May 2021. During this period, he and his partners raised about $800,000 from nearly 200 investors using a digital asset called “Stemy Coin.” Most of the investors were African-American individuals and members of church communities.
Stemy Coin: Unveiling the Stem Cell Crypto Scam
Crews promised to refund unaccredited investors, but failed to fulfill that commitment. The SEC highlighted that Crews did not take reasonable steps to verify the financial status of investors and lacked personal financial information on most of them. These oversights jeopardized investor safety and led to violations of securities laws. Investigations confirmed that Stemy Coin had no real product or technology, exposing the project as a complete scam.
To persuade investors, Crews made false claims, stating the token was backed by stem cell technology and assets like gold. He also claimed partnerships with laboratories, products, stem cell treatments, and doctors, all of which turned out to be fabricated. The SEC successfully demonstrated the falsity of these claims.
Investigations revealed that the companies produced neither products nor technologies, and there was no evidence of labs or scientific studies. The SEC emphasized that these actions violated several provisions of the Securities Act and Exchange Act.
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