UPDATE (8th January 05:55 BST): This article has been updated with additional information.

justice, courtThe 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:

“Accordingly, following entry of default by the Clerk, the Commission will file a Motion for Entry of Default Judgment with supporting memorandum and exhibits, and may also seek a further hearing to determine the amount of damages against both GAW Miners and ZenMiner pursuant to Fed. R. Civ. P. 55(b)(2).”

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”.

GAW Miners has been the subject of default entries in the past. A case filed by a Mississippi-based utility firm ended with default judgment of roughly $346,000 after the firm failed to respond to the suit.

Garza’s defense attorney, Marjorie Peerce, declined to comment when reached.

The motion for entry of default can be found below:

Motion for Entry of Default

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