A Florida man and his company have been hit with federal charges over a crypto mining fraud that allegedly stripped more than 380 investors of tens of millions of dollars — and the numbers buried in the SEC’s complaint tell a damning story. The Securities and Exchange Commission filed partially settled charges against Zan Shaikh and his company Mining Automatic, alleging the pair raised roughly $22 million while funneling almost none of it into the mining operation they promised investors.
Key takeaways
The SEC charged Zan Shaikh and Mining Automatic with a $22 million crypto mining fraud affecting more than 380 investors between June 2023 and May 2025.
Only about 13% of investor funds were used for actual crypto mining expenses, according to the SEC complaint.
At least $20 million more was taken from investors than was ever repaid to them.
Funds were primarily used for marketing to recruit new investors and for Shaikh’s personal and unrelated business expenses.
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