In a significant legal victory, the U.S. Securities and Exchange Commission (SEC) has secured a $1.1 million default judgment against Keith Crews, an alleged crypto conman from Kennesaw, Georgia. Crews failed to appear in court to defend against civil fraud charges related to his "Stemy Coin" crypto offering, which was falsely promoted as being based on non-existent stem cell technology.
Key Takeaways
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The SEC won a $1.1 million default judgment against Keith Crews.
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Crews was accused of defrauding investors through his "Stemy Coin" scheme.
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The scheme involved false claims of stem cell technology and gold backing.
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Crews exploited connections within the African-American and church communities.
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A permanent injunction bars Crews from future securities law violations.
The Allegations Against Keith Crews
The SEC filed its lawsuit against Keith Crews in August 2023, accusing him of orchestrating an affinity fraud scheme through his companies, Stem Biotech LLC and Four (4) Square Biz LLC. Between October 2019 and May 2021, Crews allegedly raised at least $800,000 from approximately 200 investors by promoting and selling a digital token called "Stemy Coin."
Crews primarily conducted these sales via email, phone solicitations, company websites, and a network of "ambassadors" who distributed his approved promotional materials. A key aspect of his alleged fraud was exploiting his connections within the African-American community, including relationships formed at church and Bible study groups, to solicit investors, many of whom were non-accredited.
Deceptive Practices and False Claims
The SEC's complaint detailed a pattern of deceptive practices by Crews. He allegedly made numerous false representations to investors, including claims that:
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Stemy Coin was backed by advanced stem cell treatments and tangible assets like gold.
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Stem Biotech had operational laboratories, real medical products, and ongoing partnerships with healthcare professionals and biotech firms.
In reality, the SEC found that none of these claims were true. "Crews and his entities had no existing stem cell technology, products, or operations; there was no partnership with the claimed entities," the complaint stated. Crews also reportedly used the names of professionals and companies, such as Dr. Shah and Alexandros, without their consent to bolster the credibility of his operations. Both Dr. Shah and BHI, another company whose branding was misused, issued cease and desist letters to Crews.
Court's Ruling and Penalties
On June 3, 2025, Judge Tiffany Johnson of the United States District Court for the Northern District of Georgia issued a default judgment against Crews due to his failure to respond to the charges or defend himself. The court ordered Crews to pay over $1.1 million in total financial penalties, including:
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Disgorgement of illicit profits: Over $530,000
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Prejudgment interest: Nearly $51,000
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Civil penalty: An additional $530,000
Furthermore, the ruling includes a permanent injunction, prohibiting Crews from violating securities laws in the future. This judgment marks a significant victory for the SEC in its efforts to combat cryptocurrency-related fraud.
Sources
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SEC wins $1.1M as crypto conman made a no-show in court, Cryptopolitan.
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SEC Wins $1.1M Crypto Fraud Case by Default Judgment, Coinspeaker.
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SEC Scores $1.1M Win as Crypto Scammer Keith Crews Dodges Court, CoinCodex.
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SEC wins $1.1M as alleged crypto conman a no-show in court — TradingView News, TradingView.
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SEC wins suit as accused crypto scammer a no-show in court, Cointelegraph.
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