The SEC has charged Mining Automatic with a $22 million crypto mining fraud
21.07.2026
SEC Sues Mining Automatic Over Alleged $22 Million Crypto Mining Fraud
The U.S. Securities and Exchange Commission (SEC) has initiated legal proceedings against Mining Automatic, accusing the company and its management of organizing a fraudulent scheme to attract investments in crypto mining. According to the SEC, since early 2025, Mining Automatic has raised more than $22 million from thousands of investors, promising high returns on investments in cryptocurrency mining equipment and capacity.The investigation found that the company provided false information about the profitability and technical capabilities of its mining farms. Investors were guaranteed returns of up to 20% per month; however, according to the SEC, a significant portion of the funds was used to pay earlier participants rather than for actual mining. Thus, the scheme exhibited characteristics of a Ponzi scheme.The SEC is demanding that Mining Automatic’s assets be frozen and that funds be returned to affected investors. Commission officials emphasize that such schemes undermine confidence in the digital asset market and urge investors to exercise caution when choosing investment platforms. The investigation is currently ongoing, and Mining Automatic’s management faces civil and criminal liability.- Total losses are estimated at $22 million
- Thousands of investors worldwide have been affected
- The SEC is stepping up oversight of the crypto market