The U.S. SEC sues a $22 million crypto mining fraud, involving more than 380 investors

Golden Finance reported that on July 21, the U.S. Securities and Exchange Commission (SEC) announced it had filed a lawsuit against Florida resident Zan Shaikh and his company Mining Automatic, accusing them of raising approximately $22 million from more than 380 investors through a purported cryptocurrency asset mining investment scheme, and allegedly misappropriating investors’ funds.
The SEC said that between June 2023 and May 2025, the defendants promised investors they could earn guaranteed monthly returns through crypto mining, but in reality only used about 13% of the募集资金 for the so-called mining business, with the rest mainly going to marketing, attracting new investors, and paying personal and other unrelated business expenses. The SEC said the amount raised by the defendants exceeded the amount already returned to investors by at least $20 million.
The SEC has charged them with alleged violations of the anti-fraud and securities issuance provisions under the Securities Act of 1933 and the Securities Exchange Act of 1934. Both sides have agreed to accept permanent injunctions once approved by the court; subsequent amounts for the return of illegal proceeds, interest, and civil penalties will be determined by the court.
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