The US Securities and Exchange Commission has sued Mining Automatic and its founder Zan Shaikh, accusing them of raising $22 million from investors through misleading promises of guaranteed returns from cryptocurrency mining.

The Massachusetts-based operation, conducted through Bright Vision Distribution LLC, attracted more than 380 investors between June 2023 and May 2025. According to the complaint, only about 13 percent of the funds supported actual mining activities, generating roughly $1.1 million in revenue.

The company allegedly paid investors approximately $1.8 million in returns, with some distributions funded by new investor capital. Marketing expenditures reached about $7 million, while Shaikh directed funds toward personal real estate, vehicles, entertainment and personal accounts.

Payments to investors ceased by March 2025, leaving more than $20 million in principal outstanding. The SEC described elements of the operation as resembling a Ponzi scheme.

The agency is seeking disgorgement, civil penalties, injunctions and bars preventing Shaikh from selling securities or serving as an officer or director of a public company.

The case aligns with the SEC’s broader regulatory efforts, including its strategic focus on blockchain, tokenization and market infrastructure under new leadership. It coincides with ongoing congressional consideration of legislation to clarify oversight roles for digital assets.