UK Crypto Executive Fights SEC Over Fraud Claims

Dynamis LLP client and UK-based former cryptocurrency executive Manpreet Kohli is pushing back against the U.S. Securities and Exchange Commission (SEC), arguing that the agency overstepped its jurisdiction in filing fraud claims against him. Kohli, who is also facing criminal charges, contends that the SEC’s case lacks sufficient ties to Massachusetts, where the lawsuit was filed.

Kohli, once the CEO of a $7.5 billion crypto-asset company, is accused of promoting and selling unregistered cryptocurrency securities. However, in a motion to dismiss, he asserts that the SEC has failed to establish “minimum contacts” with Massachusetts to justify the case being heard in the state. The complaint, he argues, merely alleges that he engaged in crypto transactions and social media promotions, but does not claim he specifically targeted U.S. investors or conducted business within the country.

Kohli is represented by Eric S. Rosen and Michael B. Homer of Dynamis LLP, who strongly dispute the SEC’s claims. Rosen and Homer argue that the lawsuit should be dismissed due to the lack of evidence connecting Kohli to U.S. investors, reinforcing that his client never entered the U.S. or conducted transactions from there. The SEC’s reliance on Kohli’s past role as CFO of Saitama LLC—a Massachusetts-based company that quickly dissolved—is, according to Rosen, insufficient to justify jurisdiction.

The case is part of a broader SEC crackdown on crypto-related fraud, marking the first criminal prosecution of alleged market manipulation and wash trading in the cryptocurrency industry. However, Kohli’s legal team is challenging the agency’s reach, setting the stage for a potentially precedent-setting ruling on the SEC’s authority over international crypto figures.