SEC Sues Mining Automatic Founder Over Alleged $22M Crypto Scam

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Mining Automatic, a crypto mining investment business, and its founder Zan Shaikh.

According to the SEC's complaint, Mining Automatic raised $22 million from over 380 investors between June 2023 and May 2025 by promising guaranteed monthly returns from 'crypto asset mining.'

The regulator alleges that the company spent about 13% of the funds on mining operations, while generating only $1.1 million in revenue.

The SEC claims that investor payments totaling around $1.8 million were made with money from other investors, creating a funding gap and potentially constituting a Ponzi scheme.