UPDATE (8th January 05:55 BST): This article has been updated with additional information.
The US Securities and Exchange Commission (SEC) has filed a motion for entry of default in its ongoing case against the now-defunct cryptocurrency startup GAW Miners.
The filing alleges GAW Miners and ZenMiner, two firms mentioned in the SEC’s suit filed last month, have failed to respond to an official complaint.
Notably, the filing does not mention CEO Josh Garza, who was charged with securities fraud tied to the issuance of the firm's Hashlet mining contracts and the operation of a Ponzi scheme after a months-long investigation ended in December.
The SEC's case against GAW came months after the firm collapsed amid growing scrutiny and suspicion that it was operating fraudulently.
According to the 6th January filing, a response to the SEC’s complaint by GAW Miners and ZenMiner was due by 28th December.
The SEC said in its filing that next steps may include a request for an entry of default judgment and court time to determine damages against the companies, writing:
SEC attorney Kathleen Shields wrote in an attached declaration that "neither GAW Miners nor ZenMiner has filed an answer or otherwise responded to the complaint as of today".
Garza's defense attorney, Marjorie Peerce, declined to comment when reached.
The motion for entry of default can be found below:
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