SEC Sues a Cryptocurrency Company for More Than $100 Million in Alleged Fraud

The U.S. Securities and Alternate Fee (SEC) has filed a lawsuit in opposition to Touzi Capital and its CEO, Eng Taing, over a $115 million fraud scheme that deceived greater than 1,500 traders throughout the nation.

The case focuses on unregistered securities choices linked to crypto mining and debt restructuring firms.

In accordance with the SEC grievance, Taing and Touzi Capital raised $95 million for cryptocurrency mining initiatives and one other $23 million for debt restructuring initiatives between 2021 and early 2023. The investments had been marketed as “steady and predictable,” and Taing reportedly likened them to yielding high-quality financial savings accounts. However the SEC claims the investments had been removed from secure, describing them as “extremely speculative and illiquid” ventures that relied on dangerous third-party operations.

The grievance additionally alleges that the cash raised was divided between unrelated firms and misappropriated for Taing’s private use. The SEC additionally accuses Touzi Capital of overlaying up operational failures and persevering with to lift cash from traders whilst the businesses started to break down.

“Touzi Capital’s traders have obtained no response from the corporate or Taing,” the SEC mentioned, claiming that Taing is now not involved with the affected events.

The SEC is looking for everlasting injunctions, civil penalties and an officer and director ban in opposition to Taing to forestall Taing from working publicly traded firms sooner or later.

*This isn’t funding recommendation.