The financial regulator has accused Geosyn of failing to disclose that it was not providing the services it claimed in its offering documents. These services included offering personalized crypto mining strategies and providing round-the-clock monitoring of mining machines.
The regulator also alleges that the company’s founders misappropriated approximately $1.2 million for personal use and made payments totaling about $354,500 to investors. Internal messages between the defendants purportedly indicate the need to buy Bitcoin to fully fund these distributions.
The Securities and Exchange Commission (SEC) has filed a lawsuit against Geosyn and its founders for violating federal securities laws concerning antifraud and registration provisions. The SEC is seeking permanent injunctive relief, disgorgement of ill-gotten gains with prejudgment interest, civil penalties, and any other equitable relief deemed necessary by the court.