SEC Accuses Touzi Capital of Misappropriating Over $100 Million
The U.S. Securities and Exchange Commission (SEC) has stepped up its legal action against the cryptocurrency industry, charging investment firm Touzi Capital and its founder Eng Taing.
The SEC charged the company with orchestrating a fraud scheme worth more than $100 million involving unregistered securities and misappropriation of investor funds.
The U.S. Securities and Exchange Commission (SEC) charges Touzi Capital with $115 million in cryptocurrency fraud
The U.S. Securities and Exchange Commission (SEC) filed a lawsuit on November 29, claiming that Touzi Capital defrauded more than 1,500 investors across the United States. The company reportedly raised $95 million between 2021 and early 2023 Cryptocurrency mining projects $23 million for debt repair ventures.
However, the SEC alleged that the funds were misused and concentrated in unrelated businesses for Taing’s personal benefit.
“The defendants mixed investor funds into their various businesses, some of which had nothing to do with crypto-asset mining, misappropriated funds for Taing’s personal use, and misled investors about the profitability of their business operations,” the committee said. allegedly.
The SEC continued to allege that Capital Markets marketed its products as safe, high yield investment Similar to a savings account. However, these investments are speculative and dependent on risky third-party operations.
The complaint also highlights how the company claims its Bitcoin mining Business is misleading. Investment capital commitments through low-cost energy contracts and advanced mining equipment, But fluctuating energy bills and equipment issues undermine those claims.
“In fact, Touzi Capital’s Bitcoin mining ‘break-even’ point is misleading because it is calculated in a way that excludes known factors. Additionally, Touzi Capital’s crypto-asset mining operations have highly volatile energy costs, and There have been problems with the equipment,” the SEC added.
The U.S. Securities and Exchange Commission (SEC) reported that Touzi Capital’s operations had collapsed, leaving investors in the dark due to Taing’s lack of communication. In response, the SEC is seeking a permanent injunction, civil penalties and disgorgement of unlawful proceeds. The lawsuit also seeks to bar Taing from serving as an officer or director of any company.
This legal action adds to the SEC’s active enforcement record Chairman Gary Genslerwho will resign in January. In fiscal year 2024, the SEC filed 583 enforcement cases, Received record fine of $8.2 billion and remedies. High-profile encryption cases, including Terraform Labs pays $4.5 billion to settleaccounting for more than half of the full-year financial recovery.
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