SEC sues Mining Automatic and founder over alleged $22M crypto mining scheme

Written by Nate Kostarstaff writerReviewed by Sam Bourgistaff writerWritten by Nate Kostarstaff writerReviewed by Sam Bourgistaff writerSEC sues Mining Automatic and founder over alleged $22M crypto mining schemeLatest NewsPublishedJul 20, 2026The SEC alleges Mining Automatic and its founder raised $22 million from investors by promising guaranteed crypto mining returns while spending only a fraction of the funds on mining operations.The US Securities and Exchange Commission (SEC) has sued crypto mining investment business Mining Automatic and its founder, Zan Shaikh, alleging they raised $22 million from investors while spending only about 13% of the funds on mining operations.Mining Automatic was operated by Massachusetts-based Bright Vision Distribution LLC, which the SEC said raised the money from more than 380 investors between June 2023 and May 2025.The company allegedly promised guaranteed monthly returns from crypto asset mining despite operating a business that could not generate the advertised payouts. The SEC said investor money was instead used for marketing, personal expenses and unrelated ventures.According to the complaint, the operation generated about $1.1 million from mining while paying investors roughly $1.8 million in purported returns. The SEC alleged the shortfall meant some payments were funded with money from other investors, giving the scheme “some of the hallmarks of a Ponzi scheme.”Mining Automatic also allegedly spent about $7 million on advertising to attract new investors, while Shaikh used investor funds for real estate, vehicles, entertainment and transfers to his personal bank accounts. Related: White House says it received no Democratic response related to SEC, CFTC vacanciesMining Automatic stopped paying investors by March 2025, and the SEC said none had recovered their original investment. More than $20 million in principal remains unpaid, according to the complaint.The SEC is seeking disgorgement, civil penalties and permane…

SEC sues Mining Automatic and founder over alleged $22M crypto mining scheme

Coins in this story

Related stories

Tether Gold recognized as Accepted Spot Commodity in Abu Dhabi financial center

Bitcoin defies recent tech stocks sell-off. Are bulls eyeing a $70K rally?

Bitmine grows treasury to 5.78M ETH as Ether outpaces Bitcoin