SEC Obtains Court Order to Enforce Investigative Subpoena to Issuer of Purported Crypto Asset

On May 23, 2024, the U.S. District Court for the Southern District of Florida granted the Securities and Exchange Commission’s application to enforce a subpoena for the production of documents to James L. Koutoulas (“Koutoulas ”), and denied Koutoulas’s petition to quash that subpoena.

***

According to the SEC’s filing, the SEC is investigating whether Koutoulas or entities he controlled violated the federal securities laws in connection with the offer and sale of the “Let’s Go Brandon” Coin (“LGBCoin”). As part of the investigation, the SEC issued an administrative subpoena to Koutoulas seeking documents and communications relevant to determining whether LGBCoin was offered and sold as a security. Rather than complying with the subpoena, Koutoulas filed a petition to quash, arguing that the SEC lacked jurisdiction because LGBCoin is not a security. The SEC opposed the petition and cross petitioned for an order compelling obedience with the subpoena.

On May 23, 2024, the Court denied Koutoulas’s petition, and ordered him to comply with the subpoena….

Source: SEC Obtains Court Order to Enforce Investigative Subpoena to Issuer of Purported Crypto Asset