SEC Charges Florida Resident Zan Shaikh and Mining Automatic in $22 Million Crypto Mining Fraud Scheme

According to the SEC, on July 21, the agency charged Florida resident Zan Shaikh and his company Mining Automatic with conducting a fraudulent cryptocurrency mining investment scheme that defrauded over 380 investors of approximately $22 million. Between June 2023 and May 2025, the defendants promised investors guaranteed monthly returns through crypto mining but allegedly diverted most funds to marketing and other unrelated expenses.

The SEC stated that only about 13% of raised funds were used for actual mining operations, with at least $20 million remaining unaccounted for. The defendants face charges under the Securities Act of 1933 and the Securities Exchange Act of 1934 for fraud and illegal securities offerings. Both parties have agreed to a permanent injunction pending court approval, with disgorgement, interest, and civil penalties to be determined by the court.