SEC sues Touzi Capital and CEO over $115m crypto mining fraud that allegedly impacted 1,500 investors – DL News #CriptoNews

The US Securities and Exchange Commission has filed a lawsuit against Touzi Capital and its CEO, Eng Taing, alleging a $115 million fraud scheme involving unregistered securities offerings.

According to the complaint, the defendants defrauded over 1,500 investors nationwide by making misleading statements about the investments in crypto mining and debt rehabilitation businesses.

Between 2021 and early 2023, Taing and Touzi Capital raised nearly $95 million for crypto mining projects and $23 million for debt rehabilitation ventures.

However, the SEC claims the funds were commingled across unrelated businesses, and misappropriated for Taing’s personal benefit.

The projects were also falsely marketed as “stable and predictable” investments that Taing likened to high-yield savings accounts.

In reality, the SEC alleges, the investments were “highly speculative and illiquid,” with profitability dependent on risky third-party operations.

The complaint further alleges that Touzi Capital concealed operational failures and continued soliciting investors even after the businesses began collapsing.

“Touzi Capital’s investors have not been able to get answers from the company or from Taing,” the SEC noted, adding that Taing has allegedly stopped communicating with them.

The SEC is seeking permanent injunctions, civil penalties, and an officer and director bar against Taing.

In fiscal year 2024, the SEC filed 583 enforcement actions, including numerous high-profile crypto cases, and obtained a record $8.2 billion in financial remedies.

Crypto-related actions targeted fraudulent schemes and misleading disclosures, such as the historic $4.5 billion judgment against Terraform Labs and Do Kwon.

Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at [email protected].