Overview
- The SEC filed its complaint Monday, July 20, 2026, saying Mining Automatic and founder Zan Shaikh raised about $22 million from more than 380 investors for a crypto mining business that largely did not operate as represented.
- The agency alleges only about 13% of investor money was spent on mining costs and most funds were diverted to advertising, Shaikh’s personal expenses, and unrelated business uses.
- The complaint says the defendants promised guaranteed monthly returns and made false claims about mining capacity and experience that misled retail investors.
- Shaikh and Mining Automatic have consented to proposed judgments without admitting or denying the allegations, with proposed orders that would permanently bar them and impose an officer-and-director ban while monetary remedies remain for the court to decide.
- The case was handled by the SEC’s Cyber and Emerging Technologies Unit and Boston office and follows a wave of recent U.S. enforcement actions against alleged crypto investment frauds, which could affect investor recovery and push for tighter oversight.