BlockBeats News, July 21st, the U.S. Securities and Exchange Commission (SEC) announced that it has filed a lawsuit against Florida resident Zan Shaikh and his company Mining Automatic, accusing them of raising approximately $22 million from over 380 investors through a false cryptocurrency mining investment scheme, and allegedly misappropriating investor funds.

The SEC stated that from June 2023 to May 2025, the defendants promised investors guaranteed monthly returns through cryptocurrency mining, but actually only used about 13% of the funds raised for the so-called mining operation. The remaining funds were primarily used for marketing, attracting new investors, and paying personal and other unrelated business expenses. The SEC claimed that the defendants raised over $20 million more than the amount already returned to investors.

The SEC has charged them with violating the anti-fraud and securities issuance provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The parties have agreed to a permanent injunction subject to court approval, and the amount of disgorgement of ill-gotten gains, interest, and civil penalties will be determined by the court.