SEC accuses Touzi Capital of $100M fraud in crypto mining scheme
The company offered to invest in high-yield cryptocurrency mining funds
The U.S. Securities and Exchange Commission (SEC) sues Touzi Capital over fraud and illegal sale of unregistered securities
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Touzi Capital, accusing the firm and its CEO, Eng Teng, of fraud and the illegal offering of unregistered securities worth over $100 million.
From 2021 to early 2023, Touzi Capital promoted investments in its cryptocurrency mining funds, raising approximately $95 million from over 1,200 investors. Additionally, the company secured another $23 million for its debt rehabilitation business.
However, the SEC alleges that Touzi Capital commingled investor funds and distributed them across unrelated ventures not tied to cryptocurrency mining. A portion of these funds was allegedly misappropriated by the CEO for personal use and to showcase inflated earnings.
According to the complaint, Touzi Capital and its owner misled investors about the stability of their investments, describing them as high-yield and safe. They reportedly continued soliciting additional funds even as some of their projects began to fail.
SEC seeks pretrial settlement penalties
The SEC is now demanding that Touzi Capital pay civil penalties, return the illegally obtained funds with interest, and comply with permanent injunctions, including those targeting the CEO.
Amid the Touzi Capital case, speculation has arisen that other investigations involving cryptocurrency companies might be dropped and lawsuits withdrawn.
Despite recent signs of improving relations between U.S. authorities and the crypto industry, the Securities and Exchange Commission (SEC) continues its legal battles with Binance.
