The Crowd Machine Compute Token was meant to pay to use holders’ computer time, but it never became operational.
A court in California has ruled that Crowd Machine and Metavine, issuers of Crowd Machine Compute Tokens (CMCT), pay more than $20 million in disgorgement, interest and penalties in a case that began over two years ago. The companies’ founder, Craig Sproule, was also found liable.
Sproule’s troubles began in January 2022, when the United States Securities and Exchange Commission (SEC) filed suit against him claiming that the 2018 initial coin offering (ICO) for CMCT was a “fraudulent and unregistered” securities sale. Besides the claim of unregistered securities sales, it was also alleged that Sproule misused and lost $5.8 million of the $33 million he raised.
CMCT was designed to reimburse computer owners for using their computing power and pay programmers for writing code. The tokens never became operational.
