SEC Just Nailed a Guy for Allegedly Selling "Insured" Crypto Tokens That Weren't Insured at All The scheme was almost impressive in how brazen it was. Donald Basile allegedly ran a $16 million fraud selling tokens he claimed were backed by insurance. Plot twist - there was no insurance. The #SEC charged him with securities fraud for his "Blazar Token" project. He allegedly told investors their money was protected by a $50 million insurance policy. That policy didn't exist. He also promised the tokens would trade on major exchanges and generate guaranteed returns. None of that happened either. Instead, the money allegedly went to his personal expenses and other business ventures. This is why "trust me bro" doesn't work in #crypto. The SEC is seeking disgorgement, penalties, and a permanent ban from the securities industry.