Mining Automatic Accused of Defrauding Over 380 Investors Out of $22 Million

A US-based crypto mining venture, Mining Automatic, has been accused of defrauding over 380 investors out of an estimated $22 million. According to a complaint filed by the SEC on July 20, the defendants promised guaranteed monthly returns between June 2023 and May 2025, but only spent 13% of investor funds on actual mining operations.

The SEC alleges that Mining Automatic's CEO, Zan Shaikh, used investor money for personal expenses and unrelated business ventures. The regulator claims that at least $20 million more was taken in than repaid to investors, with the majority going towards marketing efforts to solicit new investors.

The proposed consent judgments would result in permanent injunctions against Shaikh and Mining Automatic, but any potential investor recovery remains uncertain. A separate FBI investigation has also been launched, seeking additional victims connected to the scheme.