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GAW Miners & CEO Josh Garza Charged With Fraud by SEC, Fined $10 Million

Summary: GAW Miners and ZenMiner appear to have been a classic ponzi scheme. Customers believed they were buying into a lucrative “cloud mining” operation with guaranteed profits, when in reality Garza had little or no Bitcoin mining hardware and was paying customers from proceeds of other companies. GAW Miners and ZenMiner are reported to have sold $19 million worth of cloud mining contracts.

Josh Garza failed to respond to fraud charges against his companies GAW Miners and ZenMiner brought on by the SEC in December, 2015, thus the companies were charged the default penalty of $10 million dollars. There are also pending charges against Garza himself, but he has filed for an extension to respond and thus no judgment has been made yet.

Article Source: VICE | Image Source: TheMerkle