380 investors face Bitcoin mining losses after alleged $22M US scheme put just 13% into mining
The SEC alleges that US-based crypto mining venture Mining Automatic, operated by Bright Vision Distribution LLC and Zan Shaikh, raised about $22 million from more than 380 investors while spending only 13 cents of each dollar on actual mining operations. From roughly June 2023 to May 2025, they allegedly promised guaranteed monthly returns even though the operation could not support them. The SEC says at least $20 million more was taken in than repaid, with much of the money used for marketing to recruit new investors, Shaikh’s personal expenses, and unrelated business costs. Shaikh and Mining Automatic agreed to proposed permanent injunctions pending court approval; Shaikh also agreed to an officer-and-director bar and conduct-based injunction. Monetary penalties would be decided later. The FBI is separately seeking additional victims linked to Shaikh and related entities, expanding the pool beyond the SEC case. Recovery for investors remains uncertain.
