The SEC Sues Touzi Capital and Its CEO for $115 Million Cryptocurrency Mining Fraud

BlockBeats News, November 30th, according to DL News, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Touzi Capital and its CEO Eng Taing, accusing them of a $115 million unregistered securities offering fraud. According to the complaint, from 2021 to early 2023, the defendants raised approximately $118 million through false advertising of cryptocurrency mining and debt restructuring business, with $95 million for the crypto mining project, $23 million for the debt restructuring project, involving over 1,500 investors nationwide.

SEC stated that Taing misrepresented the projects as "stable and predictable" high-yield savings account investments, when in reality these investments were "highly speculative and illiquid." SEC accused the defendants of misappropriating investor funds for personal use and continuing to solicit investors even as the business was collapsing. In the 2024 fiscal year, the SEC initiated a total of 583 enforcement actions and secured a record $8.2 billion in financial remedies.