The SEC has suspended its fraud case against Geosin mining at the request of the accused officers, following federal allegations on similar allegations.
On 14 February, the SEC informed a Texas court that it would suspend the ongoing case against crypto mining company Geosin, as originally Informed By cointelegraph. After this decision, after the surrender of the CEO of Geosin, Kaleb Ward, and former Operations Head, Jeremy McNet, the officers followed by the federal prosecutors, ward, Jeremy George McNet, and a former executive Jeed McNet, customers to discredit customers Instead of cheating on, he incorrectly explained his money for personal expenses. To conduct their crypto mining business.
The accused requested that the SEC stops his case in light of federal allegations and to evaluate how the pro-crypto regulation of the Trump administration can affect the SEC’s authority. However, the SEC said that the case had nothing to do with the crypto regulation and emphasized that it did not include allegations of selling cryptocurrency.
The SEC suit, which was filed in April 2024, alleged that Kaleb Joseph Ward and Jeremy George McNut offered an unregistered and fraud securities. According to the trial, between November 2021 and December 2022, the three raised $ 5.6 million from 64 investors by selling investment contracts, making wrong claims about their mining operations.
In particular, the accused misled investors by promising special power deals which would make mining profitable. They also failed to disclose that they did not bought or activated mining machines for their investors. Finally, SEC claimed that they misused $ 1.2 million for personal expenses and used $ 354,500 to pay other investors by purchasing bitcoins (BTCs) for payment.
