SEC Lawsuit Exposes Geosyn's $5.6M Investor Fraud Scheme

Friday, 26 April 2024, 10:38

The US SEC has filed a lawsuit against crypto mining firm Geosyn, accusing it of misappropriating $5.6 million from investors. The lawsuit sheds light on fraudulent activities, including deception of investors, misrepresentation of operations, and diversion of funds for personal use. The SEC seeks permanent injunctions, repayment of funds, and penalties from Geosyn and its executives.
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SEC Lawsuit Exposes Geosyn's $5.6M Investor Fraud Scheme

What is Behind SEC's Charges Against Geosyn?

According to the SEC's recent announcement on April 24, the authority has charged Geosyn and its executives with deceiving approximately 64 investors during 2021 and 2022. Those implicated include CEO Caleb Joseph Ward and former operations chief Jeremy George McNutt.

Operation Deception and Misrepresentation

Geosyn promised investors that it would purchase, maintain, and operate crypto mining machines and distribute the mined assets but failed to meet these commitments. It misled investors about energy costs, manipulated payouts, and diverted funds for personal use.

Legal Consequences and Demands

  • The SEC demands permanent injunctions against the defendants
  • The commission seeks repayment of the misappropriated funds and additional penalties
  • Despite announcements of potential bankruptcy, the fate of Geosyn remains uncertain

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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