The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against crypto mining investment firm Mining Automatic and its founder, Zan Shaikh, accusing them of raising $22 million from investors while allocating only a small portion to mining operations.
The agency alleges that the scheme was run through Massachusetts-based Bright Vision Distribution LLC, which collected funds from more than 380 investors between June 2023 and May 2025, promising monthly guaranteed returns tied to cryptocurrency mining.
The SEC claims that Mining Automatic stopped making investor payments by March 2025 and that investors had not recovered their principal. The regulator is seeking multiple remedies, including disgorgement and civil penalties, as well as permanent injunctions and restrictions on Shaikh's ability to sell securities or serve as an officer or director of a public company.