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SEC Charges Florida Man and Company in $22 Million Crypto Mining Fraud Scheme on Monday

GateNews
Enforcement Actions
According to the Securities and Exchange Commission, on Monday (July 20), the agency filed partially settled charges against Zan Shaikh and his company Mining Automatic for defrauding more than 380 investors in a fraudulent crypto asset mining scheme totaling approximately $22 million. The SEC alleges that between June 2023 and May 2025, Shaikh and Mining Automatic promised investors guaranteed monthly returns from a purported mining operation but used only about 13% of investor funds on crypto mining expenses. The complaint states the company took in at least $20 million more than it repaid investors, using the funds primarily for marketing to recruit new investors and covering Shaikh's personal and unrelated business expenses. Shaikh and Mining Automatic have consented to a permanent injunction against future violations of the Securities Act of 1933 and the Securities Exchange Act of 1934.
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