SEC sues Zan Shaikh and his company for alleged fraud of $22 million

The US Securities and Exchange Commission (SEC) has sued Florida resident Zan Shaikh and his company Mining Automatic, accusing them of raising approximately $22 million and misappropriating funds from over 380 investors through a fraudulent cryptocurrency mining program. Between June 2023 and May 2025, the defendant only used approximately 13% of the funds for mining, while the remaining funds were used for marketing, personal and unrelated business expenses, raising at least $20 million more than the amount returned. The SEC accuses the defendant of violating the relevant provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Both parties have agreed to accept a permanent injunction upon approval by the court, and the subsequent amount of illegal gains, interest, and civil fines will be determined by the court.