SEC Files Lawsuit Against Geosyn Mining for $5.6 Million Fraud

Exciting news! The US Securities and Exchange Commission (SEC) took action on Wednesday, April 24, by filing a lawsuit against bitcoin miner Geosyn Mining. They claim that over 64 investors were defrauded of $5.6 million. Shocking, right?

This lawsuit, filed in Fort Worth, Texas, zeros in on Geosyn and key figures like CEO Caleb Joseph Ward and former operating chief Jeremy George McNutt. The SEC alleges that from November 2021 to December 2022, they duped investors by selling service agreements under false pretenses.

What’s Geosyn Mining Accused Of?

Geosyn is accused of exaggerating their mining operations, profits, and misrepresenting the number of mining rigs they purchased. They promised low energy costs but actually incurred rates 40-50% higher than stated.

Despite pledges to buy 1,400 mining rigs, Geosyn fell short by 400 and left many machines unused. Investors were promised choice in mining digital assets but were later restricted to only mining Bitcoin.

Dodgy Documents and Misuse of Funds

Geosyn fabricated documents to deceive investors about mining profits. Although they made a meager $320,000, they handed out $354,500, misleading investors about their returns.

Ward and McNutt siphoned $1.2 million for personal expenses. From lavish meals and vacations to firearms and legal fees, the duo didn’t hold back. McNutt even splurged on a Las Vegas wedding and a family trip to Disney World using investor funds.

In a bizarre twist, McNutt and an employee were arrested for DUI during a digital asset conference, leading to expenses like a breathalyzer using $22,000 of investor money. Yikes!

McNutt’s Exit and Ward’s Excuses

In October 2022, McNutt left Geosyn and gave up his stake, while Ward accused him of embezzlement two months later. Ward’s financial troubles in 2023 led to IOU notes to investors, hinting at bankruptcy that never materialized.