SEC is reportedly investigating Bitcoin startup GAW Miners

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The crypto-company GAW Miners and its CEO Josh Garza are reportedly being investigated by the Securities and Exchange Commission (SEC), according to an online leak.

The information was firstly revealed by the site CoinFire, which claims to have obtained “over 1,000 pages of an investigation file from a confirmed Commission employee that also has a bombshell draft of a potential enforcement litigation action against the company”.

According to the site, the SEC documents – which were not published by CoinFire – claim that the business is currently violating Section 17(a) of the Securities Act of 1933, an anti-fraud provision.

gaw-miners-logo-300GAW Miners was founded around a year ago and started as a platform where clients could re-sell their Bitcoin mining rigs. Not long after the launching the company started offering cloud-based mining services and even created its own altcoin, called Paycoin.

The platform currently manages Paybase, its own cloud-based wallet service, the cloud-based mining service ZenMiner and also an online forum called HashTalk.

However, the rumours that the GAW business was a scam or a business with connections to illegal activities have been around since the beginning. The Reddit thread ‘GAW Miners – Liars, Frauds – A brief recap of what we know‘ is a good example of what is being said around the web.

The website ArsTechnica tried to contact the CEO Josh Garza and other members of the team, but nobody from GAW Miners has replied yet to confirm or deny the story. The SEC also declined to confirm or comment the rumours.

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Maria Santos

Maria is an experienced journalist currently living in the UK. She has been writing about Bitcoin and the altcoin universe since 2013. She is also a member of the Lifeboat Foundation's New Money Systems Board and a big cryptocurrency supporter.

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