The SEC alleged Geosyn Mining’s co-founders misappropriated $1.2 million of its investors’ funds, spending it on holidays, nightclubs and firearms.
The United States securities regulator filed a lawsuit against Geosyn Mining and its co-founders alleging they defrauded investors out of $5.6 million by lying about the amount of crypto mining rigs it operated while using customer money for personal expenses.
The Securities and Exchange Commission’s April 24 lawsuit in a Fort Worth, Texas federal court claimed Geosyn, its CEO Caleb Joseph Ward, and former operating chief Jeremy George McNutt defrauded around 64 investors through service agreements sold as securities between November 2021 and December 2022.
The SEC alleged the agreements to buy and run crypto miners on customers’ behalf for a fee “falsely claimed” Geosyn had contracts with electricity providers for cheap energy but in reality, the costs were “as high as 40-50% above” the rates it told customers.
