The SEC determined not to impose civil penalties against Linus Financial because of the Nashville-based company’s cooperation and prompt remedial actions.
for failing to register the offers and sales of its retail crypto lending product, the Linus Interest Accounts.
The Securities and Exchange Commission today announced settled charges against Linus Financial, Inc. The Securities and Exchange Commission charged Stoner Cats 2 LLC (SC2) with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs) that raised approximately $8 million from investors to finance an animated web series called Stoner Cats. According to the SEC's order, Wines participated in the drafting, review, and approval of an April 2021 press release that promoted the offering and the underlying purchase agreements for the offering. The Securities and Exchange Commission announced settled charges against James Michael Wines ('Wines'), arising out of his role in a crypto asset securities offering that raised more than $1.5 million from over 30 investors in May 2021.
