A Georgia federal judge has handed a decisive victory to the U.S. Securities and Exchange Commission (SEC), awarding the agency over $1.1 million after the defendant in a crypto fraud case failed to respond to legal proceedings.
The case centers on Keith Crews, who was accused by the SEC in August 2023 of orchestrating a deceptive digital asset scheme that misled hundreds of investors. After Crews failed to appear or contest the charges, Judge Tiffany Johnson issued a default judgment on June 3, granting the SEC a full legal win.
Crews was ordered to pay $530,000 in ill-gotten gains, nearly $51,000 in prejudgment interest, and another $530,000 in civil penalties. The court also imposed a permanent injunction, barring Crews from violating federal securities laws going forward.
SEC Says ‘Stemy Coin’ Scam Targeted Faith and Minority Communities
The SEC’s complaint focused on a failed crypto project called “Stemy Coin,” which regulators allege was part of a fabricated investment scheme designed to exploit trust within African-American communities and church networks.
Between October 2019 and May 2021, Crews allegedly used two entities—Four Square Biz and Stem Biotech—to solicit over $800,000 from nearly 200 investors. He marketed Stemy Coin as a cutting-edge digital asset, supposedly backed by gold and groundbreaking stem cell technology.
But according to investigators, the science was entirely made up. The SEC found no operational labs, no biotech products, and no partnerships with medical researchers—despite Crews’ claims to investors. Instead, they allege he built the illusion of legitimacy through false promises and leveraged personal relationships to secure funds.
Fabricated Labs, False Promises, and SEC Enforcement
Regulators say Crews didn’t just stretch the truth — he invented it. The SEC complaint outlined how Crews touted non-existent collaborations with scientists and promoted fictional stem cell breakthroughs to lend credibility to Stemy Coin. There were no functioning labs, research partnerships, or technologies behind the project — only marketing spin and fabricated credentials.
The agency accused Crews of violating key provisions of the Securities Act and Exchange Act, including fraud and selling unregistered securities. Despite the Trump administration’s more hands-off approach to crypto enforcement, the SEC emphasized that it would continue to pursue cases where digital assets are used to deceive and defraud investors.
The ruling is a rare courtroom win for the SEC in a year marked by slower regulatory momentum but serves as a strong reminder that crypto fraud — especially when it preys on social trust — remains firmly in the agency’s crosshairs.
Quick Facts
- SEC wins $1.1 million judgment against crypto fraudster Keith Crews.
- Crews failed to appear in court, leading to a default judgment.
- The fraud involved a fake project called “Stemy Coin,” targeting minority and faith-based communities.
- The SEC alleged violations of securities fraud and unregistered offerings.
- The case highlights the agency’s continued focus on trust-based crypto scams.
