SEC, which is talked about with its moves against Bitcoin and cryptocurrency industry, added a new one to its series of cases.
At this point, the SEC recently filed a lawsuit against Bitcoin mining company Geosyn Mining and its co-founders Caleb Joseph Ward and Jeremy George McNutt.
The SEC lawsuit alleged that Geosyn and its founders defrauded approximately 64 investors through the sale of service agreements under the guise of securities.
The SEC added to its allegations that Geosyn Mining and its co-founders defrauded investors of $5.6 million between November 2021 and December 2022.
The SEC said co-founders Ward and McNutt also lied to investors about Geosyn's operations. Accordingly, he claimed that Geosyn failed to purchase 400 of the 1,400 mining rigs it agreed to purchase, and most of the purchased mining rigs were never brought online.
Finally, the SEC added that the company made some BTC payments to investors to make them believe that its mining machines were working and profitable when they were not, and created fake documents showing fabricated mining production rates and profits.
“The Securities and Exchange Commission has filed charges against Geosyn Mining, a Texas-based cryptocurrency mining company, and its co-founders, Caleb Ward and Jeremy McNutt, for making unregistered and fraudulent securities offerings.
The SEC alleges that between November 2021 and December 2022, Geosyn, Ward (Geosyn's CEO), and McNutt (Geosyn's then-COO) raised approximately $5.6 million from more than 60 investors.
“The SEC charges the defendants with fraud and violations of the anti-fraud and securities registration provisions of the federal securities laws.”
*This is not investment advice.