GAW Miners and ZenMiner’s founder Homero Joshua Garza is being sued by the SEC

Chris Lee

GAW Miners and ZenMiner’s founder Homero Joshua Garza is being sued by the Securities and Exchange Commission. The SEC filed a civil complaint alleging that the Bitcoin mining companies run by Garza and his brother, Carlos Garza, committed $19 million worth of fraud in a Ponzi scheme.

According to the Securities and Exchange Commission believes Garza sold more than 10,000 “investment contracts representing shares in the profits they claimed would be generated from using their purported computing power to ‘mine’ for virtual currency.” In its civil complaint, the SEC requests that the companies’ owners and associates return the money that was stolen to investors in addition to civil penalties justified by the “egregious nature of defendants’ violations.”

This is yet another example of alleged criminal behavior associated with companies selling Bitcoin mining hardware. In the past, similar cases were reported in Southern California where a company named Gemcoin was brought to the attention of the Securities and Exchange Commission. But this was not the only case and companies such as CoinTerra, or HashFast were also accused of conducting similar practices.

In a statement, the director of SEC’s Boston Regional Office, Paule G. Levenson said that, “As alleged in our complaint, Garza and his companies cloaked their scheme in technological sophistication and jargon, but the fraud was simple at its core: they sold what they did not own, misrepresented what they were selling, and robbed one investor to pay another.”

For months, the Bitcoin community has emitted some serious doubts as to the legitimacy of GAW Miners’ practices and many thought the company may be a scam. In view of the charges faced by the company and its owners, these doubts may have been founded.

Chris Lee

Latest news

The Loophole Desperate Investors Are Using To Scramble Out Of FTX
NFT loophole allows FTX investors to reclaim their funds Desperate measures appear to be the only option for beleaguered FTX investors Claims of a $1. Read more
Desperate FTX Customers Lured Into Secondary Scams
FTX investors are losing hope of getting their money back from the bankrupt platform. Read more

Safest Forex Brokers 2022

Broker Info Best In Customer Satisfaction Score
#1 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
#2 BlackBull Markets LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
#3 75 % of retail CFD accounts lose money Founded: 2014 Global Forex & CFD Broker
Number One Broker
Best Trading Conditions Visit broker
#4 Forex Broker eToro Logo67% of CFD traders lose Founded: 2007 Global CFD & FX Broker
Number One Broker
#5 Plus500 Forex broker logo72 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008 Global CFD Broker
Number One Broker
Best Trading App Visit broker

    Forex Fraud Certified Brokers

    HYCM Logo
    BlackBull Markets Logo
    OctaFX Logo
    Plus500 Small Logo
    skilling logo
    IC Markets Logo Logo
    XM Logo
    AvaTrade logo
    ATFX Logo
    Exness Small Logo
    City Index Logo
    LegacyFX Small Logo
    IQ Option Logo