The U.S. Securities and Exchange Commission has filed a lawsuit against crypto executive Donald Basile, accusing him of raising around $16 million through misleading claims tied to a token called Bitcoin Latinum. According to the complaint, Basile marketed the asset as “insured” and asset-backed—claims regulators say were never substantiated by any actual insurance provider.

The funds were raised via SAFT agreements (Simple Agreements for Future Tokens), promising investors future delivery of the token. But instead of backing the asset, the SEC alleges that a large portion of the money was diverted to personal expenses, including real estate, credit cards, and even a $160,000 horse. The regulator is now seeking penalties, repayment, and a ban on Basile participating in future securities offerings.