SEC Wins $1.1M Default Judgment After Keith Crews Skips Crypto Fraud Case

The SEC crypto fraud case against Keith Crews ended with a $1.1 million penalty after he failed to appear in court. On June 3, 2025, a Georgia federal court granted a default judgment in favor of the U.S. Securities and Exchange Commission (SEC).

SEC vs Keith Crews Default Ruling. Source: U.S. District Court, Northern District of Georgia

Judge Tiffany Johnson issued the ruling after Crews did not respond to the SEC’s complaint filed in August 2023. The court found him liable for running a crypto scam through unregistered securities.

The order includes $530,000 in disgorgement, $50,878 in prejudgment interest, and a $530,000 civil penalty. In addition, the judgment permanently bans him from future violations of federal securities laws.

SEC Alleges Keith Crews Ran Stemy Coin Crypto Scam

According to the SEC crypto fraud case, Keith Crews operated the scam between October 2019 and May 2021. He raised at least $800,000 from nearly 200 investors by selling a token called Stemy Coin.

The SEC said Crews used his companies, Four Square Biz and Stem Biotech, to promote Stemy Coin as a crypto asset backed by stem cell technology and gold. He claimed the firms had labs, medical products, and a record of treatments.

The SEC stated that Crews targeted investors through ties in African-American communities and church groups, creating trust through community connections. It alleged that none of the claims were true.

Four Square Biz and Stem Biotech Had No Products or Labs

The SEC default judgment confirmed that Four Square Biz and Stem Biotech had no products, labs, or technology. The SEC said there were no research teams or partnerships as Crews had claimed.

“Crews and his entities had no existing stem cell technology, products, or operations. There was no partnership with the claimed entities,” the complaint stated.

The court agreed with the SEC that the offering involved unregistered securities and violated the fraud provisions of the Securities Act and Exchange Act. The agency presented evidence that Crews made false claims to gain investment.

SEC Secures Rare Crypto Enforcement Win in 2025

The case marks a rare outcome for the SEC crypto fraud case in 2025, as enforcement actions have decreased under the current administration. However, because Keith Crews failed to respond, the court granted the SEC default judgment.

The $1.1 million penalty will be split across restitution, interest, and civil penalties. Crews is now permanently restricted from engaging in securities offerings under federal law.

The case highlights how the SEC continues to apply existing laws to crypto scam activities, even when defendants avoid court proceedings.

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