Crowd Machine (CMCT)
A 2018 ICO for 'Crowd Machine Compute Tokens' (CMCT) that the SEC charged as fraudulent: founder Craig Sproule raised ~$33M to build a decentralized app platform but secretly diverted $5.8M to South African gold-mining entities. Consent judgments ordered ~$20M+ and barred Sproule as an officer/director.
Also known as: Crowd Machine, CMCT, Crowd Machine Compute Token, Metavine
Summary
Crowd Machine, founded by Australian Craig Sproule (with his company Metavine), ran an initial coin offering of "Crowd Machine Compute Tokens" (CMCT) between January and April 2018, raising about $33 million (Sproule claimed $40.7M). Investors were told the funds would build technology to run app-development software on a decentralized network of users' computers. [1][2]
The fraud
Per the SEC's January 2022 complaint (its first ICO-fraud charge of that year), Sproule instead diverted more than $5.8 million of ICO proceeds to gold-mining entities in South Africa — a use never disclosed to investors — and made materially false statements. [1][2]
Outcome
Sproule and the companies consented to antifraud/registration judgments (Jan 2022): Sproule paid a $195,047 penalty, was barred from serving as a public-company officer/director, and the tokens were to be disabled. In January 2024 a court ordered Crowd Machine/Metavine to disgorge ~$19.7M plus ~$3.4M interest and $600K penalties each. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.