SEC Takes Legal Action Against Geosyn Mining for Misappropriating $1.2 Million
The Securities and Exchange Commission (SEC) has cracked down on Geosyn Mining, a crypto-mining company, for allegedly misappropriating $1.2 million of customer funds in a fraudulent securities offering. Co-founders Caleb Ward and Jeremy McNutt are facing legal action for deceiving investors and diverting funds for personal expenses.
According to the SEC, Geosyn collected over $5 million from investors between November 2021 and December 2022, promising to manage crypto asset mining machines and distribute mined cryptocurrencies. However, the company allegedly misled investors about profitable mining operations and failed to disclose their failure to fulfill commitments to prior investors.
The SEC’s complaint accuses Geosyn of not delivering promised services, diverting funds for personal use, and distributing profits despite lack of profitability. The legal action seeks injunctions against Ward and McNutt, disgorgement of funds, and civil penalties for violating securities laws.
This case highlights the regulatory scrutiny in the cryptocurrency sector and the importance of investor protection. As the industry continues to evolve, the SEC is taking a strong stance against fraudulent activities to safeguard investors’ interests.
