The post SEC Halts Geosyn Mining Fraud Case Amid Federal Criminal Charges appeared on BitcoinEthereumNews.com.

TLDR SEC pauses fraud lawsuit against Geosyn Mining after executives’ surrender to federal authorities for similar charges of defrauding customers CEO Caleb Ward and operations chiefs Jeremy and Jared McNutt accused of misappropriating investor funds for personal expenses instead of crypto mining operations Company raised $5.6 million from 64 investors between 2021-2022 through unregistered securities offering Executives allegedly made false claims about special electricity deals and failed to purchase mining equipment $1.2 million was used for personal expenses and $354,500 was used to buy Bitcoin to make payouts appear legitimate The Securities and Exchange Commission (SEC) has temporarily halted its civil fraud lawsuit against crypto mining firm Geosyn Mining. The pause comes after the company’s executives surrendered to face federal criminal charges on similar allegations of investor fraud. On February 14, 2025, the SEC informed a Texas court about the suspension of proceedings against Geosyn Mining. The decision followed the surrender of the company’s CEO, Caleb Ward, and former operations chief, Jeremy McNutt, to federal authorities. The federal prosecutors have charged Ward, Jeremy George McNutt, and another former executive, Jared McNutt, with defrauding customers. The allegations state that the executives misused investor funds for personal expenses rather than operating their promised crypto mining business. The executives requested the SEC pause its case in light of the federal charges. They also cited potential changes in crypto regulation under the Trump administration as a factor that might affect the SEC’s authority in the matter. However, the SEC has maintained its position that the case is unrelated to cryptocurrency regulation. The agency emphasized that their lawsuit does not involve allegations of selling cryptocurrencies, but rather focuses on the sale of unregistered securities and fraud. The SEC’s original lawsuit, filed in April 2024, detailed how Ward and Jeremy George McNutt conducted an unregistered securities…

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Filed under: News - @ February 17, 2025 10:21 am