Emre Yumlu 
The U.S. Securities and Exchange Commission (SEC) has secured a $1.1 million legal victory in a crypto fraud case after the defendant, Keith Crews, failed to appear or respond to the court. As a result, the judge issued a default judgment in favor of the regulator.
The ruling, delivered on June 3 by federal judge Tiffany Johnson in Georgia, holds Crews accountable for more than half a million dollars in unlawful gains. In addition, he must pay around $51,000 in interest and a civil penalty of $530,000.
The judgment also includes a permanent ban prohibiting Crews from engaging in future violations of U.S. securities laws.
Exploiting Communities Through False Promises
According to the SEC, Crews orchestrated a deceptive scheme using two companies — Four Square Biz and Stem Biotech — between October 2019 and May 2021, raising approximately $800,000 from 200 investors.
He pitched “Stemy Coin,” a supposed crypto asset that he claimed was backed by stem cell innovation and tangible assets such as gold. In reality, none of the promised infrastructure, technologies, or products actually existed.
The campaign notably targeted African-American networks and faith-based communities, suggesting a deliberate strategy to exploit trusted relationships for financial gain.
No Labs, No Partners, No Science
Despite presenting himself as connected to medical professionals and research institutions, the SEC revealed that no partnerships or operations ever materialized. Crews allegedly fabricated stories about advanced biotech solutions and medical treatments to convince people of the legitimacy of his offerings.
The companies had no real facilities, research programs, or technical capabilities — only marketing claims that misled investors.
The SEC accused him of violating multiple securities laws, including anti-fraud and registration provisions. The court found these claims to be valid and ruled accordingly.
A Rare Win for Regulators in the Crypto Arena
While recent enforcement actions in the crypto sector have slowed, this outcome marks a notable success for the SEC. In an environment where regulatory clarity and enforcement have faced political and legal headwinds, this case stands out as a rare instance of decisive legal resolution.
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