A pair of Bitcoin mining companies and their founder face an SEC lawsuit claiming they ran a $20 million Ponzi scheme with investors’ money (SEC v. Garza, D. Conn., 3:15-cv-1760, complaint filed 12/1/15).
The agency claimed that Homero “Josh” Garza and his companies, GAW Miners LLC and ZenMiner LLC, sold shares in Bitcoin mining operations without having the computing power needed to perform the calculations and generate Bitcoins.
They also used new investors’ money to pay old investors, the SEC alleged Dec. 1 in the U.S. District Court for the District of Connecticut.
Mining.
Bitcoins are “mined” ...
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