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

Forex vs Crypto: What’s Better For Beginner Traders?
The crypto and forex markets are two of the world’s most popular among investors and traders. Read more
Three Great Technical Analysis Tools for Forex Trading
You don’t have to be very technical minded to make use of technical analysis in your forex trading. Read more

Safest Forex Brokers 2024

Broker Info Best In Customer Satisfaction Score
#1 Blackbull LogoYour capital is at risk Founded: 2014 Global Forex Broker
Number One Broker
BEST SPREADS Visit broker
4.8
#2 AvaTrade LogoYour capital is at risk Founded: 2006 Globally regulated broker
Number One Broker
BEST CUSTOMER SUPPORT Visit broker
4.9
#3 * 82% 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 Provider
Number One Broker
Best Trading App Visit broker
5
#4 Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
4.9
#5 Forex Broker eToro Logo51% of retail CFD accounts lose money Founded: 2007 Global CFD & FX Broker (*Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more)
Number One Broker
ALL-INCLUSIVE TRADING PLATFORM Visit broker
4.9
#6 XM LogoYour capital is at risk Founded: 2009, 2015 and 2017 Global Forex Broker
Number One Broker
Low minimum deposit Visit broker
5
#7 FxPro LogoYour capital is at risk Founded: 2006 CFD and Cryptocurrency Broker
Number One Broker
CFD and Cryptocurrency Visit broker
5

    Forex Fraud Certified Brokers

    XM Logo
    BlackBull Logo Small
    eToro Logo
    FxPro logo
    AvaTrade logo
    FXTM Logo
    CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.