According to TechFlow, on September 29, the U.S. Securities and Exchange Commission (SEC)'s lawsuit against the crypto company Green United attracted attention. The SEC accused Green United of defrauding investors of $18 million by selling "Green Boxes" mining equipment.

The SEC said the devices were unable to mine Ethereum-based GREEN tokens because they are not mineable. Last week, a federal judge rejected Green United’s request to dismiss the case, sparking speculation that sales of crypto mining hardware could be considered securities.

Ishmael Green, a partner at the law firm Diaz Reus, pointed out that as long as the mining equipment is sold with the understanding that the end user will mine, there will be no problem. Hadas Jacobi, a consultant at the law firm Reed Smith, said that the SEC did not explicitly mention managed mining, but this could have an impact on managed mining services.

Judge Ann Marie McIff Allen of the U.S. District Court for the District of Utah said the SEC had sufficiently alleged that Green Boxes, in combination with the escrow agreement, constituted securities.