Bitcoin

Million

April

Notable

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/sec-charges-texas-crypto-firm-geosyn-in-5-6-million-fraud-case/" data-wpel-link="internal">SEC Charges Texas Crypto Firm Geosyn in $5.6 Million Fraud Case</a><br></p>
<p class="p1" style="text-align: justify">The U.S. Securities and Exchange Commission has charged Texas-based cryptocurrency mining and asset custody company <strong>Geosyn</strong>, along with its founding partners Caleb Ward and Jeremy McNutt, with fraud involving $5.6 million. The agency, in its complaint filed on April 24, stated that nearly everything the defendants represented about Geosyn’s miner acquisitions and operations contained some degree of falsehood.</p> 
<h2 class="p1" style="text-align: justify" id="significant-move-from-sec-officials">Significant Move from SEC Officials</h2> 
<p class="p1" style="text-align: justify"><strong><a href="https://en.coin-turk.com/popular-altcoins-among-turkish-crypto-investors/" data-wpel-link="internal">SEC</a></strong> in the report claimed that the defendants defrauded over 60 investors to raise approximately $5.6 million between November 2021 and December 2022. The SEC’s complaint noted that Geosyn never purchased mining machines for previous investors, failed to disclose this process to new investors, and did not deliver the services stated in the company’s offering documents.</p> 
<p class="p1" style="text-align: justify"><strong>The agency</strong> also accused the defendants of perpetuating the fraud by falsely claiming to have entered into profitable contracts with electricity providers, alleging costs were 40-50% higher than claimed to investors. Additionally, it is alleged that the two founding partners misused $1.2 million of company funds for personal expenses like family vacations and buying watches.</p> 
<p><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-344860 size-full" src="https://coin-turk.com/wp-content/uploads/2024/04/geosyn.jpg" alt="" width="800" height="600"></p> 
<h2 class="p1" style="text-align: justify" id="notable-details-of-the-process">Notable Details of the Process</h2> 
<p class="p1" style="text-align: justify">During the said period, the <strong>Geosyn</strong> team, McNutt and Ward, reportedly masked operational issues and gaps by making periodic <a href="https://coin-turk.com/populer-analist-halving-sonrasi-bitcoinde-parabolik-ralli-baslayacak" data-wpel-link="internal">Bitcoin</a> distributions to investors. According to the complaint, Geosyn collected only $320,000 from mining but distributed a total of $354,500 in <a href="https://en.coin-turk.com/bitcoin-price-seeks-support-analysts-views-on-btc-after-the-fed/" data-wpel-link="internal">Bitcoin</a> to investors, forcing McNutt to purchase Bitcoin to fill the gap.</p> 
<p class="p1" style="text-align: justify">The complaint mentioned that Geosyn’s funds began to plummet by the end of 2022, following which McNutt resigned and relinquished his ownership stake in the company after Ward accused him of embezzlement. In early 2023, Ward reportedly sent emails to investors stating that Geosyn would later repay the Bitcoin debt.</p> 
<p class="p1" style="text-align: justify">The SEC is seeking the return of the funds to investors and penalties against the trio, requesting permanent injunctions. The agency stated the following regarding the process:</p> 
<blockquote> 
 <p class="p1" style="text-align: justify">“Each defendant acted as an expert and engaged in the referenced actions knowingly or with severe negligence.”</p> 
</blockquote> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/sec-charges-texas-crypto-firm-geosyn-in-5-6-million-fraud-case/" data-wpel-link="internal">SEC Charges Texas Crypto Firm Geosyn in $5.6 Million Fraud Case</a></h5>

SEC Charges Texas Crypto Firm Geosyn in $5.6 Million Fraud Case

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