[U.S. SEC Sues $22 Million Crypto Mining Scam Involving Over 380 Investors] BlockBeats News, July 21: The U.S. Securities and Exchange Commission (SEC) announced a lawsuit against Florida resident Zan Shaikh and his company, Mining Automatic, accusing them of raising approximately $22 million from over 380 investors through a fraudulent crypto asset mining investment scheme and misappropriating investor funds. The SEC stated that between June 2023 and May 2025, the defendants promised investors guaranteed monthly returns through crypto mining. However, only about 13% of the raised funds were actually used for the purported mining operations, with the remaining funds primarily spent on marketing, attracting new investors, and covering personal and unrelated business expenses. According to the SEC, the amount raised by the defendants exceeded the amount returned to investors by at least $20 million. The SEC has charged the defendants with violating anti-fraud and securities offering provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Both parties have agreed to a permanent injunction, pending court approval, with the amounts for disgorgement of ill-gotten gains, interest, and civil penalties to be determined by the court.