SEC sues Mining Automatic and founder over $22M fraud

The U.S. Securities and Exchange Commission has filed a lawsuit against crypto mining investment firm Mining Automatic and its founder, Zan Shaikh, alleging they defrauded investors of approximately $22 million. The civil complaint, filed in U.S. District Court for the District of Massachusetts, was announced on July 20, 2026.

According to the SEC, Shaikh and his company, legally registered as Bright Vision Distribution LLC, raised funds from more than 380 investors between June 2023 and May 2025. They allegedly promised guaranteed monthly returns from cryptocurrency mining operations. The regulator contends the advertised payouts could not be supported by the underlying business activity, stating mining generated only about $1.1 million in revenue while investor payments totaled roughly $1.8 million, creating a significant shortfall.

The SEC alleges that only about $1.3 million of the $22 million raised was spent on costs linked to actual mining operations. Instead, the complaint states approximately $7 million was diverted to marketing campaigns aimed at recruiting new investors. Investor funds were also allegedly used for Shaikh's personal expenses, including real estate,...