**SEC Takes Legal Action Against Geosyn Mining for Misappropriating $1.2 Million**
The Securities and Exchange Commission (SEC) has filed a complaint against Geosyn Mining, a crypto-mining company, alleging that it misappropriated $1.2 million of customer funds. Co-founders Caleb Ward and Jeremy McNutt are accused of conducting an “unregistered and fraudulent securities offering,” deceiving investors and diverting funds for personal use.
**Misleading Investors and Failing to Deliver Promised Services**
Between November 2021 and December 2022, Geosyn raised over $5.6 million from more than 60 investors, promising to manage crypto asset mining machines and distribute mined cryptocurrencies. However, the SEC claims that the company misled investors by falsely claiming profitable mining operations and failed to disclose their failure to fulfill commitments to prior investors.
**Legal Action Seeks Injunctions and Disgorgement of Funds**
The SEC’s complaint alleges that Ward and McNutt diverted funds for personal expenses and distributed profits despite the company’s lack of profitability. The legal action seeks permanent injunctions against the accused pair, disgorgement of funds with prejudgment interest, and civil penalties for violating federal securities laws.
**Regulatory Scrutiny in the Cryptocurrency Sector**
Geosyn’s case highlights the SEC’s commitment to combating fraudulent activities in the cryptocurrency sector and protecting investors. As the industry continues to evolve, regulatory scrutiny remains crucial to ensure transparency and accountability in crypto investments.
