US prosecutors file fraud charges against cryptocurrency mining company Geosyn and its executives, SEC suspends similar lawsuits

Odaily Planet Daily News: After US federal prosecutors made similar allegations against the CEO and two former executives of cryptocurrency mining company Geosyn Mining, the US SEC has suspended fraud lawsuits against the company and its executives. In a document submitted to the Texas federal court on February 14th, the SEC agreed to suspend the lawsuit filed in April 2024, after Geosyn CEO Caleb Joseph Ward and former operations director Jeremy George McNutt surrendered to authorities and appeared in court the day before. In a document submitted to the Texas federal court on February 5th, released on February 10th, an FBI affidavit accused Caleb Ward, Jeremy McNutt, and Jared McNutt (Geosyn's former sales manager, not named in the SEC lawsuit) of deceiving their customers and spending their money on personal belongings and expenses. The indictment states that these three individuals told clients that Geosyn would charge a monthly fee to purchase and host Bitcoin mining machines for them, and they would receive a share from the mined Bitcoin. The prosecutor accused that in many cases, they did not purchase mining machines as promised, but instead "used customer money to fund their luxurious lifestyle". （Cointelegraph） Last April, the SEC filed a lawsuit against Bitcoin mining company Geosyn Mining and its co founders, accusing them of falsely reporting the number of cryptocurrency mining equipment in operation and using customer funds for personal expenses, thereby defrauding investors of $5.6 million.