SEC Sues Mining Automatic and Founder Over Alleged $22M Crypto Mining Scam
The SEC has filed a lawsuit against Mining Automatic and its founder, Zan Shaikh, alleging a massive $22 million crypto mining scheme. The agency claims the firm lured investors with promises of guaranteed monthly returns while only allocating a tiny fraction of the capital to actual mining operations.
This enforcement action highlights the growing scrutiny on crypto investment platforms. The SEC alleges that between 2023 and 2025, funds from over 380 investors were diverted toward marketing and personal expenses rather than the promised crypto asset mining, exposing the fraudulent nature of the business model.
Operated by Massachusetts-based Bright Vision Distribution LLC, Mining Automatic reportedly raised funds from more than 380 investors between June 2023 and May 2025. However, the SEC revealed that only about 13% of the raised capital was actually used for mining operations. Instead, the investigation suggests that investor money was misappropriated for marketing, personal expenses, and unrelated ventures.
This is a summarized and adapted version by Artificial Intelligence. To read the complete original story, visit the official source.
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