Fort Worth Report, August 2024
The federal government filed a lawsuit against a former Fort Worth-based cryptocurrency mining company for allegedly defrauding clients of more than $5.6 million. In April, the U.S. Securities and Exchange Commission filed a lawsuit against Geosyn Mining and its co-founders Caleb Joseph Ward and Jeremy George McNutt. The lawsuit alleges that Ward and McNutt entered into agreements with around 64 investors, promising to purchase, maintain and operate mining machines. Geosyn would then distribute the mining assets back to investors for a fee. However, the SEC said the defendants made false claims to investors. “Almost everything that defendants represented about Geosyn’s miner purchases and operations contained some element of falsity,” the lawsuit read.
Claims to investors that are alleged to be partially or completely false include:
- Having favorable contracts with electricity providers that would allow the company to operate the machines at a profit.
- Mining machines that were promised but not purchased. Geosyn failed to purchase around 400 of the 1,400 machines agreed to in the agreements.
- Providing services such as personalized crypto mining strategies and 24/7 monitoring.
