SEC Sues Mining Automatic Over $22 Million Crypto Fraud

Filed in the U.S. District Court for the District of Massachusetts, the SEC complaint details a pattern of deception spanning from June 2023 to May 2025. Shaikh, operating through his entity Bright Vision Distribution LLC, claimed to be running a sophisticated crypto mining business that validated network transactions to generate steady income. In reality, the regulator asserts that only 13% of the capital raised was ever directed toward mining infrastructure.

Instead of funding computing power, the vast majority of investor money was diverted to aggressive marketing campaigns and Shaikh’s personal expenses. When the promised returns failed to materialize, the firm reportedly issued misleading excuses to investors to stall for time. The SEC estimates that the defendants received at least $20 million more than they ever returned, leaving the bulk of the $22 million investment unaccounted for.

Shaikh and Mining Automatic have consented to court judgments without admitting or denying the allegations, pending judicial approval. The proposed settlement includes a permanent injunction against future securities-law violations, along with an officer-and-director ban for Shaikh. Future court motions will determine the specific amounts for disgorgement, interest, and civil penalties.