UPDATE (8th January 05:55 BST): This article has been updated with additional information.
The US Securities and Exchange Commission (SEC) has filed a motion for entry of default in its ongoing case against the now-defunct cryptocurrency startup GAW Miners.
The filing alleges GAW Miners and ZenMiner, two firms mentioned in the SEC’s suit filed last month, have failed to respond to an official complaint.
Notably, the filing does not mention CEO Josh Garza, who was charged with securities fraud tied to the issuance of the firm's Hashlet mining contracts and the operation of a Ponzi scheme after a months-long investigation ended in December.
The SEC's case against GAW came months after the firm collapsed amid growing scrutiny and suspicion that it was operating fraudulently.
According to the 6th January filing, a response to the SEC’s complaint by GAW Miners and ZenMiner was due by 28th December.
The SEC said in its filing that next steps may include a request for an entry of default judgment and court time to determine damages against the companies, writing:
SEC attorney Kathleen Shields wrote in an attached declaration that "neither GAW Miners nor ZenMiner has filed an answer or otherwise responded to the complaint as of today".
Garza's defense attorney, Marjorie Peerce, declined to comment when reached.
The motion for entry of default can be found below:
Image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.