SEC sues Mining Automatic for $22M crypto mining fraud

SEC alleges Mining Automatic and Zan Shaikh defrauded 380+ investors of $22M in a crypto mining scheme, using only 13% of funds for mining and misusing the rest.

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Mining Automatic and its owner, Zan Shaikh, alleging they defrauded over 380 investors of approximately $22 million through a fraudulent crypto mining investment scheme. Operating under Bright Vision Distribution LLC, the company promised guaranteed monthly returns from crypto mining between June 2023 and May 2025. However, only about 13% of the funds were reportedly used for actual mining activities, with the majority diverted to marketing, personal expenses, and unrelated ventures. The SEC claims that Mining Automatic misled investors about its mining capabilities and the use of their funds, and that the business model could not generate the promised returns. Payments to investors ceased by March 2025, leaving more than $20 million unpaid. The SEC likened the operation to a Ponzi scheme, as it relied on new investments to pay earlier investors rather than legitimate mining profits.