The SEC Cracks Down on a $22 Million Crypto Mining Scheme

The Securities and Exchange Commission (SEC) has formally charged Zan Shaikh and his company, Bright Vision Distribution (operating as Mining Automatic), for orchestrating a fraudulent crypto-mining venture. Despite raising over $22 million from hundreds of investors under the guise of high-tech operations, the investigation reveals a stark discrepancy between marketing promises and actual business activity. This case underscores the persistent dangers of "guaranteed" returns in the volatile digital asset market.

The Illusion of Mining Profitability

According to the SEC’s complaint, the defendants solicited funds from more than 380 investors between June 2023 and May 2025. While investors were promised consistent monthly returns, the regulator alleges that the operation was never equipped to generate such profits. Shockingly, only 13% of the total capital raised was actually spent on the purported mining infrastructure. The remaining funds were reportedly diverted to pay for Shaikh’s personal expenses, marketing campaigns to attract new victims, and various unrelated business costs.

Legal Consequences and Federal Outreach

Shaikh and Mining Automatic have accepted proposed permanent injunctions and an officer-and-director bar, though these settlements still require court approval. While the legal framework for penalties is being established, the recovery of funds for defrauded investors remains uncertain and unannounced. In a parallel effort, the FBI’s Boston Division has launched a wider investigation to identify additional victims. By looking into affiliated entities such as YT Automatic and RankOne Ecommerce, federal agents believe the scope of the deception may extend back to 2022 and involve a much larger pool of affected individuals.