Guaranteed Monthly Returns From Crypto Mining: Mining Automatic Founder Agrees to Settle SEC Case Over $22 Million Raise

Published Oct. 12, 2026. Case statuses are current as of that date, based on SEC records.

Investors were promised guaranteed monthly returns from a crypto mining operation. According to the Securities and Exchange Commission, only about 13% of their money went to mining-related expenses.

On July 20, 2026, the SEC filed partially settled charges in the U.S. District Court for the District of Massachusetts against Zan Shaikh, a Florida resident, and his company, Bright Vision Distribution LLC, doing business as Mining Automatic [1]. The case is SEC v. Zan Shaikh and Bright Vision Distribution LLC, No. 26-cv-13301.

Status at a glance: Shaikh and Mining Automatic consented to judgments, subject to court approval, with money amounts to be set later by the court. The SEC release does not state whether they admitted the allegations; we describe them as allegations.

What the SEC alleges

According to the complaint, between about June 2023 and May 2025, Shaikh and Mining Automatic raised about $22 million from more than 380 investors [1]. The SEC alleges:

1. The promise. Guaranteed monthly returns from a crypto asset mining operation that was not big enough to generate them.
2. Misrepresentations about their experience, expertise and track record in mining; how investor money would be used; the status of the mining operations; and the reasons monthly payments were late.
3. Where the money went. Only about 13% went to purported mining expenses. The rest went largely to marketing to attract new investors and to Shaikh's personal and unrelated business expenses.
4. The shortfall. They took in at least $20 million more than they repaid investors.

Crypto "mining," the SEC explains, means providing computing power to validate transactions on a crypto network in exchange for crypto rewards. Mining income depends on equipment, electricity costs and crypto prices, so it cannot honestly be guaranteed.

The charges and settlement

The complaint charges Shaikh and Mining Automatic with violating Sections 5(a), 5(c) and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 [1]. Under the proposed judgments, both would be permanently enjoined from those violations; Shaikh would face an officer-and-director bar and a conduct-based injunction; and the court would later set disgorgement, prejudgment interest and civil penalties on the SEC's motion. The release does not mention a criminal case.

How an SEC civil case works

The Securities and Exchange Commission is a civil regulator. It cannot send anyone to prison. When it sues, it asks a federal judge for remedies such as an injunction (a court order not to break the securities laws again), disgorgement (giving up money obtained through the alleged violations), prejudgment interest, civil penalties, and sometimes bars from serving as a company officer or director or from working in the securities industry. Criminal charges, when they exist, are brought separately by the Justice Department.

A complaint is the SEC's side of the story. Until a court rules, or a defendant settles, the claims in it are allegations. Many defendants settle "without admitting or denying" the allegations, which means they accept a judgment and its penalties without conceding that the SEC's account is accurate. A "consent" that is "subject to court approval" is not final until a judge signs it. A "bifurcated" settlement resolves liability and the injunction now while leaving the dollar amounts for the judge to decide later. A default judgment is entered when a defendant does not respond to the lawsuit; it is a ruling against that defendant, but it is not a finding after a trial.

Red flags of crypto mining investments

• "Guaranteed" or fixed monthly mining payouts.
• No proof of machines, hosting contracts or wallet addresses receiving rewards.
• Heavy spending on ads and affiliate marketing.
• Late payments blamed on outages, upgrades or "network issues."

Before you hand anyone money for an investment

• Check the seller. Search the person and firm on Investor.gov and FINRA BrokerCheck. People who sell securities for commissions generally must be registered.
• Check the offering. Search the company name in the SEC's EDGAR database and your state securities regulator's enforcement actions.
• Treat "guaranteed" returns as a warning. Real investments carry risk. Promises of fixed monthly profits, or a guarantee that you can't lose your principal, are hallmarks of Ponzi-style schemes.
• Watch for pressure and secrecy. Deadlines, "sold out" claims, or requests to wire money to a personal or unfamiliar account deserve a pause.
• Ask how you get your money out. Excuses, delays, or new conditions when you try to withdraw are a serious red flag.

If you think you were affected

1. Save your records: account statements, wire confirmations, emails, texts and marketing materials.
2. Report it to the SEC at sec.gov/tcr and to your state securities regulator. If money was stolen, you can also report to the FBI at ic3.gov.
3. Follow the court case. If a receiver or fair fund is created, notices about claims are usually posted on the court docket or a receiver's website. The SEC does not charge fees to return money.
4. Beware of "recovery" offers. Scammers often target people who already lost money, promising to get it back for an upfront fee.

Case status (as of Oct. 12, 2026)

Defendant	Court	Status	Source
Zan Shaikh	U.S. District Court, D. Mass. (No. 26-cv-13301)	Consented to judgment (subject to court approval); monetary amounts to be determined by court	[1]
Bright Vision Distribution LLC d/b/a Mining Automatic	Same	Consented to judgment (subject to court approval)	[1]

Statuses can change. An SEC complaint contains allegations, not findings, unless a court has ruled.

Sources

1. U.S. Securities and Exchange Commission, Litigation Release No. 26590, "SEC Charges Individual and His Company in Alleged Multi-Million Dollar Crypto Asset Mining Investment Scheme," July 20, 2026. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26590

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