SEC charges Florida man and company in alleged $22 million crypto mining fraud scheme

<p><span style="font-weight: 400;">The Securities and Exchange Commission has filed partially settled charges against Zan Shaikh and his company for allegedly defrauding investors with a <a href="https://www.theblock.co/learn/245699/what-is-bitcoin-mining-and-how-does-it-work">crypto mining</a> scheme.</span></p>

<p><span style="font-weight: 400;">According to a Monday <a href="https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590">statement</a>, the agency accuses the Florida resident and his company, Mining Automatic, of raising roughly $22 million from more than 380 investors in a fraudulent crypto asset mining scheme.</span></p>

<p><span style="font-weight: 400;">The SEC alleges that between approximately June 2023 and May 2025, Shaikh and Mining Automatic promised investors guaranteed monthly returns from a purported crypto asset mining operation.

Its complaint states that the operation was unable to generate the promised returns. </span></p>

<p><span style="font-weight: 400;">"Despite their representations that they would use investors' funds to engage in crypto asset mining, Shaikh and Mining Automatic used only about 13% of investors' funds on expenses relating to purported crypto asset mining," the statement said.</span></p>