Federal judge suspends SEC lawsuit against Bitcoin Minor Geosin

A federal judge puts the brakes on the Securities and Exchange Commission (SEC) lawsuit against Bitcoin mining and hosting company Geosyn Mining LLC after federal prosecutors filed criminal charges against three executives. Ta.

CEOs Caleb Ward, COO Jeremy McNutt, and former sales manager Jared McNutt have been accused of misusing customer funds and investor money on personal luxury in place of mining equipment.

The verdict came after Ward and Jeremy McNutt, then attracted himself on Thursday and appeared in court over the imminent charges. Prosecutors allege that Geosyn executives engaged in wire fraud and carried out what appears to be operations like Ponzi, shaming a crypto mining business.

The SEC, which initially opposed the suspension of the lawsuit, agreed to stay after considering a new legal argument from the ward team.

Prosecutor: Geosyn executives used investor funds for luxury spending

Court documents that are not sealed this week reveal that Geosyn executives have made big promises to clients. Investors were told that money would be used to buy and run Bitcoin miners and profits from those machines would flow back to them. Instead, the funds were diverted for personal use, according to criminal charges.

Instead of purchasing mining equipment, prosecutors say Ward, Jeremy McNutt and Jared McNutt spent money to fund their luxurious lifestyle. According to DOJ Filing, the trio spent customer funding on “business trips” in Miami, which earned thousands of dollars in Las Vegas weddings, Disney World trips, and luxury watches and restaurants and nightclubs.

The complaint also alleges that Geosyn executives forged their financial reports to keep investors in the dark. When customers expected to mine profits, the company used money from new clients to pay old clients, creating the illusion that the business was profitable. Jeremy and Jared McNutt left the company in October 2022.

The SEC lawsuit attempting to classify Geosyn’s mining agreement as a securities is currently pending. Federal judge Mark Pittman said a recent statement from President Donald Trump and acting SEC chairman Mark Weda, who argued to ease the SEC enforcement of crypto companies, could have an impact on the case. The parties requested that he explain something.

In a response from February 11th, Ward and McNutt’s legal team argued that suspending the lawsuit gives them time to assess how the Trump administration’s crypto policy will affect the SEC’s regulatory power. did. The SEC initially fought the stay, but after reading the moves, they agreed to reverse the course and suspend the case.

“The SEC initially resisted, but after reviewing our discussion, they agreed,” said Ward’s lawyer Jeff Daniel Clark.