The SEC says Mining Automatic raised about $22 million from more than 380 investors for purported crypto mining operations, with most funds allegedly diverted to marketing, personal expenses and unrelated businesses rather than mining.
The SEC sued Zan Shaikh and Bright Vision Distribution LLC, which operated as Mining Automatic, alleging they defrauded investors in a crypto mining investment scheme that raised about $22 million from more than 380 investors between June 2023 and May 2025. The regulator said the defendants promoted guaranteed monthly returns from crypto mining, but the operation could not generate enough mining income to support those promises. The SEC alleges only about 13% of investor money went to costs tied to the claimed mining business, while much of the rest was spent on marketing, Shaikh’s personal expenses and unrelated businesses. The complaint, filed in the U.S. District Court for the District of Massachusetts, alleges violations of the registration and antifraud provisions of the Securities Act of 1933, as well as the Securities Exchange Act of 1934 and Rule 10b-5. Shaikh and the company consented to court judgments, subject to judicial approval, that would permanently bar future securities-law violations, while Shaikh would also face an officer-and-director bar and a conduct-based injunction. Disgorgement, prejudgment interest and civil penalties will be decided later by the court.