The SEC filed partially settled charges on July 20 against Zan Shaikh and his company Bright Vision Distribution LLC, doing business as Mining Automatic, alleging they raised about $22 million from more than 380 investors by promising guaranteed monthly returns from a crypto mining operation that barely existed. According to the complaint, only 13 cents of every dollar investors put in was actually spent on mining equipment and operations. The rest went to marketing, Shaikh's personal expenses, and unrelated business costs.
How the scheme worked
Between June 2023 and May 2025, Shaikh and Mining Automatic promised investors steady monthly payouts from a mining setup that, the SEC says, was never capable of generating those returns. The regulator alleges the company took in at least $20 million more than it paid back to investors. Instead of building out a real mining operation, the money was funneled largely into marketing to recruit new investors — a classic Ponzi-like structure.
What Shaikh agreed to
Shaikh and Mining Automatic have agreed to proposed permanent injunctions, though a judge still needs to sign off. Shaikh also accepted an officer-and-director bar and a conduct-based injunction. If the court approves the consent judgments, the question of disgorgement, prejudgment interest, and civil penalties will be decided later, on an SEC motion. For now, any plan to return money to investors remains unannounced and uncertain.
FBI widens the net
The FBI's Boston Division is now seeking potential victims tied to Shaikh, Bright Vision Distribution, and two other entities: YT Automatic and Mining Automatic. The bureau's questionnaire also names RankOne Ecommerce and Replic8 as affiliated companies. The FBI says investors were targeted from 2022 through 2025 — a longer window than the SEC's case, which covers June 2023 to May 2025. Submissions are voluntary, the bureau says, but may help the investigation and could make victims eligible for services, restitution, and rights under federal or state law.
The next concrete step is the court's decision on the consent judgments. After that, the SEC will file a motion asking for specific dollar amounts in disgorgement and penalties. Investors who think they were affected can fill out the FBI's questionnaire — but any recovery, if it comes, is likely months or years away.
