SEC Files Fraud Charges Against Texas Crypto Mining Firm
The U.S. Securities and Exchange Commission (SEC) has filed charges against Geosyn, a Texas-based crypto mining company, and its co-founders Caleb Ward and Jeremy McNutt for a $5.6 million fraud case.
According to the SEC, Geosyn and its co-founders misled over 60 investors between November 2021 and December 2022, misrepresenting the company’s mining operations and failing to disclose that previous investors hadn’t received promised equipment.
The complaint alleges that Geosyn also misrepresented contracts with electricity providers, while Ward and McNutt are accused of misappropriating $1.2 million for personal expenses.
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To cover operational deficits, the defendants made bitcoin distributions to investors, despite only generating $320,000 from mining. McNutt resigned in late 2022 after Ward accused him of embezzlement.
The SEC seeks a permanent injunction, repayment of misappropriated funds, and penalties, alleging that each defendant acted knowingly or with severe recklessness.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
