SEC sues Mining Automatic and founder over alleged $22M crypto mining scheme
The SEC sued Mining Automatic and founder Zan Shaikh, alleging they raised about $22 million from more than 380 investors between June 2023 and May 2025 while spending only about 13% on crypto mining. The company, run through Bright Vision Distribution LLC, allegedly promised guaranteed monthly returns from mining despite generating too little revenue to support the payouts. The SEC says mining produced about $1.1 million, while investors were paid about $1.8 million, suggesting some payouts came from new investor money. Most funds allegedly went to marketing, personal spending, and unrelated ventures, including real estate, vehicles, entertainment, and transfers to Shaikh’s personal accounts. The operation stopped paying investors by March 2025, and more than $20 million in principal remains unpaid. The SEC seeks disgorgement, penalties, injunctions, and bans on Shaikh’s future securities roles.
