SEC Files Lawsuit Against Crypto Mining Firm Geosyn

Reading Time: < 1 minute

The US Securities and Exchange Commission has filed a lawsuit against Geosyn Mining and its co-founders, accusing them of defrauding investors out of $5.6 million.

According to the lawsuit filed in a Texas court on April 24, Geosyn, CEO Caleb Joseph Ward, and former operating chief Jeremy George McNutt allegedly deceived 64 investors between November 2021 and December 2022 by offering service agreements as securities.

The SEC has alleged that these agreements, which promised to buy and operate crypto miners on behalf of customers in exchange for a fee, falsely claimed that Geosyn had contracts with electricity providers for cheap energy.

In reality, the costs were allegedly 40-50% higher than what was disclosed to investors.

The SEC also accused Ward and McNutt of lying about Geosyn’s operations, claiming that the company failed to purchase 400 of the 1,400 promised mining rigs and never activated most of the purchased machines.