The SEC suspended his fraud trial against Geosyn Mining at the request of the accused leaders, following federal accusations on similar allegations.
On February 14, the SEC informed a Texas court that it suspended the current affair against the Crypto Geosyn mining company, as Cointelegraph reported initially. This decision follows the surrender of the CEO of Geosyn, Caleb Ward, and of the former chief of operations, Jeremy McNutt, to the authorities after the federal prosecutors accused Ward, Jeremy George McNutt, and a former executive Jared McNutt, of Fraud customers by diverting their funds for personal expressions instead of personal place instead of the person instead, instead, instead of person to exploit their cryptographic mining activity.
The accused asked for the SEC to arouse his case in the light of federal accusations and to assess how the pro-Crypto regulations of the Trump administration could affect the authority of the SEC. However, the SEC argued that the case had nothing to do with the regulation of cryptography and stressed that it did not involve allegations to sell cryptocurrencies.
The SEC trial, tabled in April 2024, allegedly alleged that Caleb Joseph Ward and Jeremy George McNutt organized an offer of unregistered and fraudulent securities. According to the trial, between November 2021 and December 2022, the trio raised $ 5.6 million out of 64 investors by selling investment contracts, while making false complaints concerning their mining operation.
More specifically, the accused misled investors by promising special electricity agreements that would make mines profitable. They also did not reveal that they had not bought or activated mining machines for their investors. Finally, the SEC said it has abused $ 1.2 million for personal expenses and used $ 354,500 to pay other investors by buying Bitcoin (BTC) to reveal legitimate payments.
