Coinspeaker
SEC Sues Bitcoin Miner Geosyn for Defrauding Several Customers

On Wednesday, April 24, the US Securities and Exchange Commission (SEC) filed a lawsuit against crypto miner Geosyn Mining alleging them of defrauding more than 64 investors to the tune of $5.6 million. As per the SEC lawsuit, Geosyn and its founders lied about the crypto-mining rigs they operated and used the customers’ funds for personal expenses.

In the lawsuit in a federal court in Fort Worth, Texas, the SEC named Geosyn, its CEO Caleb Joseph Ward, and former operating chief Jeremy George McNutt. If further accuses them of selling service agreements as securities from November 2021 to December 2022.

In the lawsuit, the SEC notes that Geosyn “falsely claimed” the agreements to buy and run crypto miners on behalf of its customers and that it had contracts with electricity providers to get cheap energy. However, the real costs were “as high as 40-50% above” the rates given to its customers.

Moreover, co-founders Warn and McNutt also lied to investors regarding Geosyn’s operations, claimed the SEC. The securities regulator stated that Geosyn first told its cus...