US SEC sues crypto mining investment fraud scheme, Mining Automatic allegedly raised $22 million from over 380 investors
The U.S. Securities and Exchange Commission (SEC) announced that it has filed a lawsuit against Florida resident Zan Shaikh and his company Bright Vision Distribution LLC (operating under the name Mining Automatic), accusing them of defrauding investors through a fraudulent crypto asset mining investment scheme, with an alleged fundraising amount of approximately $22 million.
The SEC stated that between June 2023 and May 2025, Shaikh and Mining Automatic promised investors fixed monthly returns from participating in a crypto asset mining business, but the relevant mining operations were actually unable to generate the promised returns.
According to the SEC complaint, Shaikh and Mining Automatic allegedly made false statements regarding their crypto mining experience, operational capabilities, the use of investment funds, and the status of the mining business, and cited an inability to pay investor returns as a reason to explain payment delays.
