SEC sues Mining Automatic and founder over alleged $22M crypto mining scheme
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 vacancies Mining Automatic stopped paying investors by March 2025, and the SEC