World

Bitcoin

Million

Disney

The U.S. Securities and Exchange Commission (<a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/">SEC</a>) has launched a lawsuit against Geosyn Mining and its founders, alleging a $5.6 million fraud involving mismanagement and misuse of investor funds. The complaint details that Geosyn's co-founders, Caleb Joseph Ward and Jeremy George McNutt, misled investors about the operational status and financial health of their cryptocurrency mining operations, according to <a href="https://cointelegraph.com/news/sec-sues-bitcoin-miner-geosyn-fraud-allegations">Cointelegraph</a>. 
According to the SEC, from November 2021 to December 2022, Ward and McNutt sold service agreements claiming to operate a vast network of crypto mining rigs while falsely advertising cheap energy contracts. In reality, they never fulfilled the purchase of 400 out of 1,400 promised mining rigs and inflated energy cost savings, misleading investors about the true operational capacity. 
The duo is accused of using $1.2 million of the investor funds for personal luxuries, including vacations, nightclubs, and expensive purchases such as firearms and luxury watches. Notably, the SEC highlighted an extravagant $20,000 nightclub wedding in Las Vegas and a $49,000 family trip to Disney World financed through company funds. 
In attempts to maintain the facade, Geosyn reportedly issued fabricated documents to investors, suggesting their mining operations were profitable. They paid out $354,500 in Bitcoin to investors from a smaller pool of $320,000 worth of mined Bitcoin, covering shortfalls with purchased Bitcoin to deceive investors further. 
The SEC's lawsuit seeks permanent injunctions, repayment for the misappropriated funds, and penalties against Ward and McNutt. Geosyn's operations have faltered, with the company facing dire financial straits as investor funds dwindled, leaving the company with less than $1,900 by the end of 2022.&nbsp;

SEC Charges Geosyn Mining Founders in $5.6 Million Fraud Case

Ultramining_Eng

Other articles published on Apr 26, 2024

Trader Says Memecoin That’s Exploded Over 2,400% in Weeks About To Go Higher, Updates Outlook on ...

SHIB Price Prediction for April 26

Runes are offering a significant lifeline for Bitcoin miners — TeraWulf COO

Attention Altcoin Investors: Good News for 8 Altcoins from Giant Market Maker DWF Labs!

Exploring the Rise of Meme Cryptocurrencies

Bitbot Presale Passes $2.7m As New Product Peek Released

Join our free newsletter for daily crypto updates!