US prosecutors file fraud charges against crypto mining company Geosyn and its executives, SEC suspends similar lawsuits

Odaily News The U.S. Securities and Exchange Commission has suspended its fraud lawsuit against cryptocurrency miner Geosyn Mining and its executives after federal prosecutors filed similar charges against the company’s CEO and two former executives.
In a Feb. 14 filing in federal court in Texas, the SEC agreed to stay the lawsuit filed in April 2024 after Geosyn CEO Caleb Joseph Ward and the company’s former operations chief Jeremy George McNutt surrendered to authorities and appeared in court the previous day.
In a document filed on February 5 in a federal court in Texas and published on February 10, an FBI affidavit accuses Caleb Ward, Jeremy McNutt, and Jared McNutt (a former sales manager at Geosyn who was not named in the SEC’s lawsuit) of defrauding their customers and spending their money on personal items and expenses. The indictment alleges that the trio told customers that Geosyn would purchase and host Bitcoin mining machines for them for a monthly fee, and they would receive a share of the mined Bitcoin. Prosecutors allege that in many cases, they did not purchase the mining machines as promised, but instead "used customers' money to fund their lavish lifestyles." (Cointelegraph)

In April last year, the SEC filed a lawsuit against Bitcoin mining company Geosyn Mining and its co-founder, accusing them of falsely reporting the number of crypto mining equipment in operation and using customer funds for personal expenses, thereby defrauding investors of $5.6 million.