April

Million

Disney

The U.S. Securities and Exchange Commission (<a href="https://ultramining.com/news/en/bitcoin-mining-reshaping-landscape-amid-global-interest-surge/" rel="noopener noreferrer nofollow">SEC</a>) has filed a lawsuit against Fort Worth-based Geosyn Mining, accusing the company and its co-founders, Caleb Joseph Ward and Jeremy George McNutt, of defrauding investors out of $5.6 million. The lawsuit, filed in April 2024, claims that the company misled around 64 investors by promising to purchase, maintain, and operate cryptocurrency mining machines on their behalf, only to fall short on these promises, according to <a href="https://fortworthreport.org/2024/08/22/feds-accuse-former-fort-worth-crypto-company-of-defrauding-clients-of-5-6-million/" rel="noopener noreferrer nofollow">Fortworthreport</a>.
The SEC alleges that Geosyn Mining failed to purchase approximately 400 of the 1,400 mining machines agreed upon and falsely claimed to have secured favorable contracts with <a href="https://ultramining.com/news/en/minnesota-man-faces-accusations-of-electricity-theft-for-bitcoin-mining/" rel="noopener noreferrer nofollow">electricity</a> providers to ensure profitability. Additionally, the company is accused of not delivering on promises of personalized crypto mining strategies and 24/7 monitoring services.
Ward and McNutt are also accused of misappropriating $1.2 million of investor funds for personal use, including extravagant expenses such as a $20,000 Las Vegas nightclub wedding celebration and a $49,000 trip to Disney World. The SEC’s lawsuit further alleges that some of the misappropriated funds were used to pay for legal fees related to a drunk driving incident involving McNutt.
Ward, represented by the Dallas-based GreenClark Law Firm, denies the allegations, arguing that the agreements with investors were not formal investment contracts and that investors had more decision-making power than the SEC claims. McNutt, who currently lacks legal representation, has not publicly responded to the charges.
The case is set to go to trial on May 19, 2025. Geosyn Mining, which was founded in 2021, had two mining operations in North Texas and was among the early adopters of cryptocurrency mining in Fort Worth, a city that began its own crypto mining operations in 2022.

Fort Worth Crypto Company Faces $5.6 Million Fraud Lawsuit

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