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SEC Charges Mining Automatic in $22 Million Crypto Mining Fraud Case

GateNews
Enforcement Actions
According to SEC charges filed recently, the Securities and Exchange Commission is pursuing enforcement action against Zan Shaikh, a Florida resident, and his company Mining Automatic over an alleged crypto mining scheme that raised approximately $22 million from over 380 investors. The SEC alleges that Shaikh and Mining Automatic promised guaranteed monthly returns from mining operations between June 2023 and May 2025 but used only about 13% of investor funds for mining-related expenses. The agency states that at least $20 million in investor capital was retained rather than repaid, with funds redirected to marketing, personal expenses, and unrelated business costs instead of the mining operations promised to generate returns. The charges, filed under the Securities Act of 1933 and Securities Exchange Act of 1934, include a partial settlement with permanent injunctions barring future violations of securities law.
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