Audit log

Every state-changing event for Mining Automatic: 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

   2026-07-29 23:20:10Z
   Score: ? → ? (no score change)
   anchorpending

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   verifying row…

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   {"actor":"system:backfill","investigation_id":"a8e9ae45-caa1-4eea-83f6-64a574ddbbf1","kind":"publish","page_slug":"mining-automatic","published_at":"2026-07-29T23:20:10.368Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Mining Automatic","sections":[{"content":"On July 20, 2026, the SEC filed partially settled charges in the United States District Court for the District of Massachusetts against Zan Shaikh and Bright Vision Distribution LLC, doing business as Mining Automatic. The complaint alleges violations of Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Both defendants consented to judgments, pending court approval, that would permanently enjoin them from future securities-law violations. Shaikh additionally faces a conduct-based injunction and a bar from serving as an officer or director of a public company. Monetary remedies — including disgorgement of ill-gotten gains and civil penalties — remain subject to final court determination.","heading":"SEC Enforcement Action","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-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":1,"name":"SEC Complaint comp26590 (District of Massachusetts)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/comp26590.pdf"}]},{"content":"Between approximately June 2023 and May 2025, Shaikh and Mining Automatic solicited investments from more than 380 investors by marketing what the SEC describes as 'Mining Automatic Agreements.' Investors were promised guaranteed monthly returns generated by a purported crypto asset mining operation that would install and operate mining equipment on their behalf. The scheme was presented as accessible to investors without technical expertise. Mining Automatic generated approximately $1.1 million in legitimate mining revenue and distributed approximately $1.8 million to investors — a shortfall that, according to the SEC, was bridged by using capital contributed by newer investors to pay earlier ones, exhibiting hallmarks of a Ponzi scheme. The company ceased making investor payments by March 2025.","heading":"Scheme Mechanics","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26590","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"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":"The Block: SEC charges Florida man and company in alleged $22 million crypto mining fraud scheme","type":"news_article","url":"https://www.theblock.co/post/409007/sec-charges-florida-man-mining-scheme"}]},{"content":"The SEC complaint alleges that only approximately 13% of the roughly $22 million raised — approximately $2.86 million — was used for actual mining-related expenses. The remaining funds were allegedly directed as follows: approximately $7 million was spent on advertising and marketing to recruit new investors; additional sums were transferred to Shaikh's personal bank accounts and used for real estate purchases, vehicle purchases, entertainment, and other personal expenses unrelated to mining operations. At least $20 million more was taken from investors in total than was ever repaid to them. No investor has recovered their principal investment according to the SEC.","heading":"Fund Misallocation","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26590","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"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/"}]},{"content":"The SEC complaint alleges that Shaikh and Mining Automatic made materially false and misleading statements across multiple dimensions. These alleged misrepresentations include: false claims about Shaikh's experience, expertise, and track record in crypto asset mining; misstatements about how investor funds would be and were being used; false descriptions of the status of the mining operations; and fabricated explanations for why promised monthly payments could not be made when due. Investors were also allegedly led to believe the mining infrastructure was operational and generating returns sufficient to support guaranteed monthly payouts.","heading":"Alleged Misrepresentations","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26590","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":"Zan Shaikh, reported to be 28 years old and a resident of Miami, Florida, is identified by the SEC as the president and founder of Mining Automatic and as having controlled its business operations throughout the relevant period. Public records list Shaikh as associated with several other business entities including Gadget Goose, Instinct Labs, ValueMax Realty, and Sonder. Bright Vision Distribution LLC is the legal entity under which Mining Automatic operated, registered in Massachusetts. Hassan Shaikh is listed as Vice President of the company; additional officers listed by the company include a Chief Revenue Officer and Chief Operating Officer.","heading":"Operator Background","severity":"high","sources":[{"credibility":2,"name":"CryptoRank: SEC Charges Florida Man and His Firm in $22 Million Crypto Mining Fraud","type":"news_article","url":"https://cryptorank.io/news/feed/88d98-sec-charges-mining-automatic-zan-shaikh-crypto-fraud"},{"credibility":2,"name":"CryptoNews.net: SEC Charges Florida Man and His Firm in $22 Million Crypto Mining Fraud","type":"news_article","url":"https://cryptonews.net/news/legal/33175940/"}]},{"content":"According to the SEC, more than 380 investors were solicited by Mining Automatic between June 2023 and May 2025. The total amount raised was approximately $22 million. Mining Automatic ceased making investor payments by March 2025. The SEC states that, as of the time of filing, no investor has recovered their initial principal investment. The aggregate shortfall between funds taken in and funds repaid is at least $20 million. Investor complaints, documented prior to the SEC action, described abrupt cessation of monthly payments, loss of communication with management, and barriers to fund withdrawal.","heading":"Investor Impact","severity":"critical","sources":[{"credibility":1,"name":"SEC Litigation Release LR-26590","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"credibility":2,"name":"FinanceFeeds: SEC — $22M Crypto Mining Fraud Hit 380 Investors","type":"news_article","url":"https://financefeeds.com/sec-charges-mining-automatic-in-22-million-crypto-fraud-case/"}]},{"content":"The SEC's complaint includes charges under Sections 5(a) and 5(c) of the Securities Act of 1933, indicating that the 'Mining Automatic Agreements' sold to investors constituted unregistered securities. No registration statement was filed with the SEC for these offerings. The SEC is seeking a permanent injunction barring future unregistered securities offerings in addition to disgorgement and civil penalties.","heading":"Unregistered Securities Offering","severity":"high","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 LR-26590","type":"regulatory","url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"}]}],"sources_used":[{"credibility":1,"name":"SEC Litigation Release LR-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":1,"name":"SEC Complaint comp26590 (District of Massachusetts)","type":"court_filing","url":"https://www.sec.gov/files/litigation/complaints/2026/comp26590.pdf"},{"credibility":2,"name":"The Block: SEC charges Florida man and company in alleged $22 million crypto mining fraud scheme","type":"news_article","url":"https://www.theblock.co/post/409007/sec-charges-florida-man-mining-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/"},{"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":"FinanceFeeds: SEC — $22M Crypto Mining Fraud Hit 380 Investors","type":"news_article","url":"https://financefeeds.com/sec-charges-mining-automatic-in-22-million-crypto-fraud-case/"},{"credibility":2,"name":"CryptoNews.net: SEC Charges Florida Man and His Firm in $22 Million Crypto Mining Fraud","type":"news_article","url":"https://cryptonews.net/news/legal/33175940/"},{"credibility":2,"name":"CryptoRank: SEC Charges Florida Man and His Firm in $22 Million Crypto Mining Fraud","type":"news_article","url":"https://cryptorank.io/news/feed/88d98-sec-charges-mining-automatic-zan-shaikh-crypto-fraud"},{"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/"}],"summary":"Mining Automatic, the trade name of Bright Vision Distribution LLC, is a Massachusetts-registered company founded and controlled by Zan Shaikh, a Florida resident. The U.S. Securities and Exchange Commission filed partially settled charges on July 20, 2026, alleging that Shaikh and Mining Automatic raised approximately $22 million from more than 380 investors between June 2023 and May 2025 through a fraudulent, unregistered crypto mining investment scheme. According to the SEC complaint, only about 13% of investor funds were used for actual mining-related expenses, with the remainder allegedly diverted to marketing, recruitment, and Shaikh's personal spending; at least $20 million more was taken from investors than was ever repaid.","timeline":[{"date":"2023-06-01","event":"Mining Automatic, operating as Bright Vision Distribution LLC, begins soliciting investors with promises of guaranteed monthly returns from crypto mining operations.","source":"SEC Litigation Release LR-26590","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"date":"2025-03-01","event":"Mining Automatic ceases making monthly payments to investors.","source":"SEC Litigation Release LR-26590","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"},{"date":"2025-05-01","event":"The investment solicitation period ends; approximately $22 million has been raised from more than 380 investors over the roughly two-year period.","source":"Blockonomi: SEC Files Fraud Charges Against Mining Automatic","source_url":"https://blockonomi.com/sec-files-fraud-charges-against-mining-automatic-in-22m-cryptocurrency-ponzi-scheme/"},{"date":"2026-07-20","event":"The SEC files partially settled charges against Zan Shaikh and Bright Vision Distribution LLC (d/b/a Mining Automatic) in the U.S. District Court for the District of Massachusetts. Both defendants consent to permanent injunctions against future securities-law violations; Shaikh also consents to an officer-and-director bar. Monetary remedies remain subject to court determination.","source":"SEC Litigation Release LR-26590","source_url":"https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590"}]},"v":1}

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