SEC files suit against founder for 'defrauding investors' during ICO
The United States Securities and Exchange Commission (SEC) has struck against a founder for carrying forward and implementing a fraud sale of tokens via ICO or initial coin offering. The lawsuit has been filed against Australian Craig Derel Sproule.
Fraudulent sale of securities
The SEC has filed a suit against the founder, who is believed to have sold unregistered securities via his company, Metavine Inc., during its ICO for Crowd Machine (CMCT), which lasted from January to April 2018.The SEC pointed out that the self-proclaimed 'Man behind the Machine' "claimed to have raised $40.7 million through his companies, collectively referred to as 'Crowd Machine,' in an initial coin offering of Crowd Machine Compute Tokens (CMCTs)."
SEC pointed out that the founder had actually lied to the investors and never actually implemented the technology that he had promised. The ICO proceeds were to be used to help the "existing application-development software [from Metavine] to run on a decentralized network of users' own computers," which never happened.
SEC believes that the founder diverted the funds
The SEC believes that the founder actually used the proceeds from the ICO in something which wasn't promised to the investors. Sproule has been accused of "diverting more than $5.8 million in ICO proceeds to gold mining entities in South Africa.""As alleged, Sproule and Crowd Machine misled investors about how they were using ICO proceeds, spending funds on an entirely unrelated scheme," said Kristina Littman, Chief of the SEC Enforcement Division's Cyber Unit.Littman also stated that the department "will continue to hold accountable issuers of digital asset securities who fail to provide fulsome and truthful disclosure to the public."
The SEC has charged Sproule and Crowd Machine with violating the "antifraud and registration provisions of the federal securities laws," which is a serious offense. As a result, Sproule is liable to pay $195,047 as a fine and is barred from holding any office in a public company.
Continue reading by joining Cryptonary Pro
$1,548 $1,197/year
Get everything you need to actively manage your portfolio and stay ahead. Ideal for investors seeking regular guidance and access to tools that help make informed decisions.
For your security, all orders are processed on a secured server.
As a Cryptonary Pro subscriber, you also get:
3X Value Guarantee - If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
24/7 access to experts with 50+ years’ experience
All of our top token picks for 2025
On hand technical analysis on any token of your choice
Weekly livestreams & ask us anything with the team
Daily insights on Macro, Mechanics, and On-chain
Curated list of top upcoming airdrops (free money)
3X Value Guarantee
If cumulative documented upside does not reach 300% during your 12-month membership, you can request a full refund.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut through the noise and consistently find winning assets.
Our track record speaks for itself
With over 2.4M tokens and widespread misinformation in crypto, we cut
through the noise and consistently find winning assets.
Frequently Asked Questions
Can I trust Cryptonary's calls?
Yes. We've consistently identified winners across multiple cycles. Bitcoin under $1,000, Ethereum under $70, Solana under $10, WIF from $0.003 to $5, PopCat from $0.004 to $2, SPX blasting past $1.70, and our latest pick has already 200X'd since June 2025. Everything is timestamped and public record.
Do I need to be an experienced trader or investor to benefit?
No. When we founded Cryptonary in 2017 the market was new to everyone. We intentionally created content that was easy to understand and actionable. That foundational principle is the crux of Cryptonary. Taking complex ideas and opportunities and presenting them in a way a 10 year old could understand.
What makes Cryptonary different from free crypto content on YouTube or Twitter?
Signal vs noise. We filter out 99.9% of garbage projects, provide data backed analysis, and have a proven track record of finding winners. Not to mention since Cryptonary's inception in 2017 we have never taken investment, sponsorship or partnership. Compare this to pretty much everyone else, no track record, and a long list of partnerships that cloud judgements.
Why is there no trial or refund policy?
We share highly sensitive, time-critical research. Once it's out, it can't be "returned." That's why membership is annual only. Crypto success takes time and commitment. If someone is not willing to invest 12 months into their future, there is no place for them at Cryptonary.
Do I get direct access to the Cryptonary team?
Yes. You will have 24/7 to the team that bought you BTC at $1,000, ETH at $70, and SOL at $10. Through our community chats, live Q&As, and member only channels, you can ask questions and interact directly with the team. Our team has over 50 years of combined experience which you can tap into every single day.
How often is content updated?
Daily. We provide real-time updates, weekly reports, emergency alerts, and live Q&As when the markets move fast. In crypto, the market moves fast, in Cryptonary, we move faster.
How does the 3X Value Guarantee work?
We stand behind the value of our research. If the documented upside from our published research during your 12-month membership does not exceed three times (3X) the annual subscription cost, you can request a full refund. Historical context: In every completed market cycle since 2017, cumulative documented upside has exceeded 10X this threshold.
Recommended from Cryptonary
