Charges have been filed by the SEC against Geosyn Mining, with the firm’s co-founders accused of defrauding investors out of $5.6 million.

The United States Securities and Exchange Commission ( SEC ) has charged a cryptocurrency mining and hosting firm, Geosyn Mining along with its founders, Caleb Ward and Jeremy McNutt, for their roles in an unregistered and fraudulent securities offering.

At first, the company communicated its plans to acquire, manage, and operate cryptocurrency miners, intending to distribute mined assets like Bitcoin to participants for a fee.

Nevertheless, the company misled around 60 investors, amassing nearly $5.6 million between 2021 and 2022. Moreover, new investors were not informed that earlier contributors had not received the mining equipment as promised, nor had the company followed through on the services described in the initial agreements.

The SEC claims that the founders of the firm occasionally provided Bitcoin to investors to mask operational difficulties and disappointments. While the company generated $320,000 from its mining efforts, it handed out a total of $354,500 in Bitcoin to its backers. Additionally, Jeremy McNutt, one of the founders, reportedly purchased Bitcoin himself to make up for the deficit. Bitcoin Furthermore, the SEC's documentation revealed that the business falsely claimed profitable agreements with energy suppliers, constituting fraud, as the true expenses were much higher than those communicated to the investors.

The SEC has charged Geosyn Mining with breaching securities laws.

Toward the end of 2022, the financial troubles of Geosyn Mining escalated. Caleb Ward accused Jeremy McNutt of misappropriating funds, which led to McNutt's departure and relinquishment of his stake. In the previous year, Ward updated the investors regarding plans to satisfy their unpaid Bitcoin dues at a later time.

The SEC's documentation alleges that the company's founders contravened anti-fraud laws and securities registration requirements, and they are seeking a permanent court order to ensure the recovery of the alleged funds misappropriation along with imposing penalties on the founders.

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