Audit log

Every state-changing event for Mining Automatic / Zan Shaikh: moderation decisions on community submissions, plus corrections and updates from the news pipeline. URL-based decisions are designed to carry three independent witnesses — the original source, an Internet Archive snapshot, and a Solana memo signed by our publicly-disclosed publisher key. Archive coverage is still being backfilled, so each decision below reports its own snapshot status rather than assuming one exists.

1. #1publishby system:backfill

   2026-08-02 23:19:06Z
   Score: ? → ? (no score change)
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   {"actor":"system:backfill","investigation_id":"a7f98568-8646-4556-82fb-4a735f303028","kind":"publish","page_slug":"mining-automatic-zan-shaikh","published_at":"2026-08-02T23:19:06.490Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Mining Automatic / Zan Shaikh","sections":[{"content":"On July 20, 2026, the U.S. Securities and Exchange Commission filed partially settled charges against Zan Shaikh and Bright Vision Distribution LLC, doing business as Mining Automatic, in the U.S. District Court for the District of Massachusetts (Litigation Release No. 26590). The SEC charged both defendants with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The charges relate to an alleged unregistered securities offering and investment fraud scheme conducted between approximately June 2023 and May 2025. Both defendants consented to proposed judgments, subject to court approval, without admitting or denying the allegations. The proposed judgments would permanently enjoin the defendants from future violations of the cited statutes. Shaikh additionally faces an officer-and-director bar and a conduct-based injunction restricting his participation in securities offerings. Monetary remedies — disgorgement of alleged ill-gotten gains, prejudgment interest, and civil penalties — remain to be determined by the court upon motion by the Commission.","heading":"SEC Enforcement Action","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release No. 26590 — Zan Shaikh and Bright Vision Distribution LLC, d/b/a Mining Automatic","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"credibility":2,"name":"FX News Group — SEC Files Partially Settled Charges Against Mining Automatic and Zan Shaikh","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-files-partially-settled-charges-against-mining-automatic-and-zan-shaikh/"}]},{"content":"Between approximately June 2023 and May 2025, Shaikh and Mining Automatic allegedly solicited investors with promises of guaranteed monthly returns derived from crypto asset mining operations. The SEC alleges the defendants made material misrepresentations regarding their experience and expertise in crypto mining, their historical track record, the manner in which investor funds would be used, and the operational status of their mining activities. Shaikh and Mining Automatic reportedly advertised past annual returns of 51.5% (2021), 46.2% (2022), and 51.8% (2023) to prospective investors. The SEC's complaint characterizes the operation as bearing 'some of the hallmarks of a Ponzi scheme,' noting that payments made to earlier investors were funded primarily by capital raised from newer participants rather than from legitimate mining revenues. Payments to investors ceased by approximately March 2025, and the SEC states that no investor has recovered their original principal.","heading":"The Alleged Scheme: Structure and Misrepresentations","severity":"critical","sources":[{"credibility":2,"name":"The Daily Hodl — SEC Files Suit Alleging $22,000,000 Crypto Mining Fraud Scheme","type":"news_article","url":"https://dailyhodl.com/2026/07/22/sec-files-suit-alleging-22000000-crypto-mining-fraud-scheme/"},{"credibility":2,"name":"CoinTelegraph — SEC Sues Mining Automatic and Founder Over Alleged $22M Crypto Mining Scheme","type":"news_article","url":"https://cointelegraph.com/news/sec-sues-mining-automatic-and-founder-over-alleged-22m-crypto-mining-scheme"},{"credibility":2,"name":"Cryptopolitan — SEC Sues Mining Automatic and CEO Zan Shaikh Over $22 Million Mining Fraud","type":"news_article","url":"https://www.cryptopolitan.com/sec-sues-mining-automatic-22-million-fraud/"}]},{"content":"According to the SEC complaint, Mining Automatic raised approximately $22 million from more than 380 investors over the course of the scheme. Of those funds, only approximately 13% — roughly $2.86 million — was directed toward expenses relating to purported crypto mining operations. Actual mining revenue generated amounted to approximately $1.1 million, while payouts to investors totaled approximately $1.8 million. The SEC states that the defendants took in at least $20 million more from investors than was ever repaid to them, and that no investor has recovered their original principal investment. The largest single allocation of investor funds — approximately $7 million — was directed toward marketing and advertising to recruit new investors. Remaining funds were allegedly diverted to: direct bank transfers to Shaikh's personal accounts ($778,550); personal real estate charges ($375,575); vehicle purchases at a car dealership ($151,750); cash withdrawals ($118,585); entertainment expenses ($76,547); and Shaikh's personal business ventures ($500,000).","heading":"Fund Misappropriation and Investor Losses","severity":"critical","sources":[{"credibility":2,"name":"FinanceFeeds — SEC Charges Mining Automatic in $22 Million Crypto Fraud Case","type":"news_article","url":"https://financefeeds.com/sec-charges-mining-automatic-in-22-million-crypto-fraud-case/"},{"credibility":2,"name":"CoinCentral — $22M Crypto Mining Fraud: SEC Charges Mining Automatic in Alleged Ponzi Scheme","type":"news_article","url":"https://coincentral.com/22m-crypto-mining-fraud-sec-charges-mining-automatic-in-alleged-ponzi-scheme/"},{"credibility":2,"name":"Blockonomi — SEC Files Fraud Charges Against Mining Automatic in $22M Cryptocurrency Ponzi Scheme","type":"news_article","url":"https://blockonomi.com/sec-files-fraud-charges-against-mining-automatic-in-22m-cryptocurrency-ponzi-scheme/"}]},{"content":"Mining Automatic operated as a brand name for Bright Vision Distribution LLC, a legal entity registered in Massachusetts. Zan Shaikh is identified in the SEC complaint as a Florida resident and the founder and principal operator of the enterprise. The scheme ran from approximately June 2023 through May 2025, a period of roughly two years. No prior regulatory actions against Shaikh or Bright Vision Distribution LLC have been identified in publicly available sources as of the filing date. The SEC alleged that Shaikh made false representations about his and the company's prior mining experience, technical expertise, and historical performance results, though the specific nature of any prior background claimed by the defendants is not detailed in available secondary sources. The company appears to have operated primarily online, soliciting investors through marketing and advertising channels that consumed the largest share — approximately $7 million — of total investor funds raised.","heading":"Entity and Defendant Background","severity":"high","sources":[{"credibility":2,"name":"crypto.news — SEC Targets Mining Automatic Over Alleged $22M Crypto Mining Fraud","type":"news_article","url":"https://crypto.news/sec-targets-mining-automatic-over-crypto-mining-fraud/"},{"credibility":1,"name":"SEC Litigation Release No. 26590","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"}]},{"content":"The SEC described its July 20, 2026 charges as 'partially settled.' Both Zan Shaikh and Bright Vision Distribution LLC (dba Mining Automatic) consented to proposed judgments without admitting or denying the SEC's allegations. The proposed terms, pending final approval by the U.S. District Court for the District of Massachusetts, include: (1) permanent injunctions against both defendants prohibiting future violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5; (2) an officer-and-director bar against Shaikh preventing him from serving as an officer or director of any public company; (3) a conduct-based injunction against Shaikh restricting future participation in securities offerings. The dollar amounts for disgorgement, prejudgment interest, and civil penalties have not been fixed and are to be determined by the court upon motion from the Commission. No asset freeze or receiver appointment has been publicly reported in connection with this action as of the available reporting.","heading":"Partial Settlement and Pending Court Proceedings","severity":"critical","sources":[{"credibility":2,"name":"FX News Group — SEC Files Partially Settled Charges Against Mining Automatic and Zan Shaikh","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-files-partially-settled-charges-against-mining-automatic-and-zan-shaikh/"},{"credibility":1,"name":"SEC Litigation Release No. 26590","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"credibility":2,"name":"AltsWire — SEC Files Partially Settled Charges in $22M Crypto Mining Scheme","type":"news_article","url":"https://altswire.com/sec-files-partially-settled-charges-in-22m-crypto-mining-scheme/"}]},{"content":"At least one independent third-party site, Zorya Capital, published a review characterizing Mining Automatic / Bright Vision Distribution LLC as a scam prior to the SEC action. The Better Business Bureau profile for Bright Vision Distribution LLC in Marlborough, Massachusetts also recorded consumer complaints. These community-level signals predate the formal regulatory action and represent Tier 3 sources; they are reported here for completeness but should be treated as low-confidence corroboration rather than independent evidentiary findings. The existence of such community complaints is consistent with the SEC's allegation that investor payments ceased by March 2025, which would have preceded the July 2026 filing by approximately 16 months.","heading":"Community and Pre-Charge Warnings","severity":"medium","sources":[{"credibility":3,"name":"Zorya Capital — Mining Automatic / Bright Vision Distribution LLC Review (Scam Warning)","type":"community_report","url":"https://www.zoryacapital.com/mining-automatic-review-scam/"},{"credibility":3,"name":"Better Business Bureau — Bright Vision Distribution LLC Complaints","type":"community_report","url":"https://www.bbb.org/us/ma/marlborough/profile/ecommerce/bright-vision-distribution-llc-0021-553709/complaints"}]}],"sources_used":[{"credibility":1,"name":"SEC Litigation Release No. 26590 — Zan Shaikh and Bright Vision Distribution LLC, d/b/a Mining Automatic","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"credibility":2,"name":"The Daily Hodl — SEC Files Suit Alleging $22,000,000 Crypto Mining Fraud Scheme","type":"news_article","url":"https://dailyhodl.com/2026/07/22/sec-files-suit-alleging-22000000-crypto-mining-fraud-scheme/"},{"credibility":2,"name":"FinanceFeeds — SEC Charges Mining Automatic in $22 Million Crypto Fraud Case","type":"news_article","url":"https://financefeeds.com/sec-charges-mining-automatic-in-22-million-crypto-fraud-case/"},{"credibility":2,"name":"CoinTelegraph — SEC Sues Mining Automatic and Founder Over Alleged $22M Crypto Mining Scheme","type":"news_article","url":"https://cointelegraph.com/news/sec-sues-mining-automatic-and-founder-over-alleged-22m-crypto-mining-scheme"},{"credibility":2,"name":"Cryptopolitan — SEC Sues Mining Automatic and CEO Zan Shaikh Over $22 Million Mining Fraud","type":"news_article","url":"https://www.cryptopolitan.com/sec-sues-mining-automatic-22-million-fraud/"},{"credibility":2,"name":"Blockonomi — SEC Files Fraud Charges Against Mining Automatic in $22M Cryptocurrency Ponzi Scheme","type":"news_article","url":"https://blockonomi.com/sec-files-fraud-charges-against-mining-automatic-in-22m-cryptocurrency-ponzi-scheme/"},{"credibility":2,"name":"CoinCentral — $22M Crypto Mining Fraud: SEC Charges Mining Automatic in Alleged Ponzi Scheme","type":"news_article","url":"https://coincentral.com/22m-crypto-mining-fraud-sec-charges-mining-automatic-in-alleged-ponzi-scheme/"},{"credibility":2,"name":"FX News Group — SEC Files Partially Settled Charges Against Mining Automatic and Zan Shaikh","type":"news_article","url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-files-partially-settled-charges-against-mining-automatic-and-zan-shaikh/"},{"credibility":2,"name":"crypto.news — SEC Targets Mining Automatic Over Alleged $22M Crypto Mining Fraud","type":"news_article","url":"https://crypto.news/sec-targets-mining-automatic-over-crypto-mining-fraud/"},{"credibility":2,"name":"AltsWire — SEC Files Partially Settled Charges in $22M Crypto Mining Scheme","type":"news_article","url":"https://altswire.com/sec-files-partially-settled-charges-in-22m-crypto-mining-scheme/"},{"credibility":3,"name":"Zorya Capital — Mining Automatic / Bright Vision Distribution LLC Review (Scam Warning)","type":"community_report","url":"https://www.zoryacapital.com/mining-automatic-review-scam/"},{"credibility":3,"name":"Better Business Bureau — Bright Vision Distribution LLC Complaints","type":"community_report","url":"https://www.bbb.org/us/ma/marlborough/profile/ecommerce/bright-vision-distribution-llc-0021-553709/complaints"}],"summary":"Mining Automatic, legally registered as Bright Vision Distribution LLC (Massachusetts), and its founder Zan Shaikh, a Florida resident, were charged by the SEC on July 20, 2026 with raising approximately $22 million from over 380 investors through a fraudulent crypto mining investment scheme. Only approximately 13% of investor funds were directed toward actual mining operations, while the remainder was allegedly spent on marketing to recruit new investors and on Shaikh's personal expenses including real estate, vehicles, entertainment, and direct bank transfers. Both defendants consented to partial settlement terms pending court approval, with monetary remedies including disgorgement, prejudgment interest, and civil penalties still to be determined by the U.S. District Court for the District of Massachusetts.","timeline":[{"date":"2023-06-01","event":"Mining Automatic (Bright Vision Distribution LLC) begins soliciting investors with promises of guaranteed monthly returns from crypto asset mining operations, according to the SEC complaint.","source":"SEC Litigation Release No. 26590","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"date":"2025-03-01","event":"Mining Automatic allegedly halts payments to investors. The SEC states no investor has recovered their original principal.","source":"The Daily Hodl — SEC Files Suit Alleging $22,000,000 Crypto Mining Fraud Scheme","source_url":"https://dailyhodl.com/2026/07/22/sec-files-suit-alleging-22000000-crypto-mining-fraud-scheme/"},{"date":"2025-05-01","event":"The alleged scheme's operational period concludes, per the SEC complaint covering June 2023 to May 2025.","source":"FX News Group — SEC Files Partially Settled Charges Against Mining Automatic and Zan Shaikh","source_url":"https://fxnewsgroup.com/forex-news/cryptocurrency/sec-files-partially-settled-charges-against-mining-automatic-and-zan-shaikh/"},{"date":"2026-07-20","event":"The SEC files partially settled charges against Zan Shaikh and Bright Vision Distribution LLC (dba Mining Automatic) in the U.S. District Court for the District of Massachusetts (Litigation Release No. 26590). Both defendants consent to proposed judgments without admitting or denying the allegations.","source":"SEC Litigation Release No. 26590","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"date":"2026-07-21","event":"Major crypto and financial news outlets report the SEC charges, including CoinTelegraph, The Daily Hodl, Cryptopolitan, Blockonomi, and FinanceFeeds.","source":"CoinTelegraph — SEC Sues Mining Automatic and Founder Over Alleged $22M Crypto Mining Scheme","source_url":"https://cointelegraph.com/news/sec-sues-mining-automatic-and-founder-over-alleged-22m-crypto-mining-scheme"}]},"v":1}

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