More than 380 investors have lost their entire capital. The US Securities and Exchange Commission (SEC) has officially charged Mining Automatic and its owner, Florida resident Zan Shaikh. The entity, legally operating under the name Bright Vision Distribution LLC, allegedly orchestrated a $22 million fraudulent scheme. The fundraising ran continuously between June 2023 and May 2025. Hundreds of victims deposited substantial funds after being enticed by promises of fixed monthly returns from crypto mining operations.
Reality was far from what the proposal promised. Shaikh was found to have used only about 13% of all incoming funds to cover mining-related expenses. The rest of the investors’ money went toward expenditures outside standard business logic: marketing costs, Shaikh’s personal lifestyle, and capital for other businesses completely unrelated to the original agreement. Investigators determined that Mining Automatic took in at least $20 million more than it ever returned to investors.
Why Choose to Settle Quickly
The in-depth investigation was led directly by the SEC’s Cyber and Emerging Technologies Unit in collaboration with the Boston Regional Office. They charged Shaikh with a series of violations involving registration requirements and anti-fraud provisions, primarily under the Securities Act of 1933, the Securities Exchange Act of 1934, and Rule 10b-5.
Recognizing his position, Shaikh chose to step down. Alongside his company, he promptly agreed to a preliminary court judgment without admitting or denying any of the allegations. The ruling blocks Shaikh’s career with a ban on serving as an officer or director of any company. This penalty is only the court’s first step before calculating the exact figures for disgorgement, interest, and civil penalties imposed on the defendant.
Who Else Is on Regulators’ Radar
The crackdown on fraudulent schemes has been widespread this year. Prior to the Shaikh case, the US Commodity Futures Trading Commission (CFTC) also filed suit against Trevor Vernon and Argent Capital Management over an alleged $14 million fraud. Far harsher penalties have also landed outside the Americas. A Taiwanese court recently sentenced the mastermind behind crypto exchange BitShine to 22 years in prison over a string of money laundering activities involving $71 million.
A Crucial Warning for Your Wallet
The pattern in the Mining Automatic case should serve as an alarm for everyone. Crypto mining is an industrial-scale computing operation that comes with heavy costs. Offering guaranteed fixed monthly returns in an ecosystem as volatile as crypto is the primary red flag. If an operator spends your deposit on advertising to hunt for new recruits rather than purchasing equipment, it is a Ponzi scheme. Its collapse is only a matter of time.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
