SEC Sues Touzi Capital and CEO for $115m Crypto Mining Fraud Impacts
The US Securities and Exchange Commission (SEC) recently took legal action against Touzi Capital and its CEO, Eng Taing, accusing them of a $115 million fraud scheme involving unregistered securities offerings. This scheme allegedly impacted over 1,500 investors across the country.
Between 2021 and early 2023, Taing and Touzi Capital raised significant amounts of money – nearly $95 million for crypto mining ventures and $23 million for debt rehabilitation projects. However, the SEC claims that these funds were not used as promised. Instead, they were allegedly mixed with funds from unrelated businesses and misappropriated for Taing’s personal gain.
Investors were led to believe that their investments were safe and secure, like high-yield savings accounts. But according to the SEC, these investments were actually risky and dependent on uncertain third-party operations. Even as the businesses faced challenges, Touzi Capital reportedly continued to seek out new investors without disclosing the operational issues.
The SEC is now pursuing legal action, seeking injunctions, civil penalties, and a bar against Taing from serving as an officer or director in the future.
In the last fiscal year, the SEC filed 583 enforcement actions, including cases involving cryptocurrency. In total, they obtained a record $8.2 billion in financial remedies, underscoring their dedication to protecting investors and maintaining fair and transparent markets.
If you have any tips or information related to financial fraud or misconduct, you can reach out to the SEC or share your insights with reputable news outlets to help ensure that investors are safeguarded and informed.
