SEC Sues Touzi Capital for $115 Million Securities Fraud: Key Details
The US Securities and Exchange Commission (SEC) recently took legal action against Touzi Capital LLC, a crypto mining company, and its managing member Eng Taing for alleged securities law violations. The SEC claims that the defendants misled investors and misused funds totaling $115 million.
According to the SEC, Taing and Touzi Capital offered investors unregistered securities in the form of digital asset mining investment shares between 2021 and early 2023. They managed to raise about $95 million from over 1,200 investors by marketing these securities as a way to support their crypto-mining venture.
However, the SEC found that Touzi Capital mishandled these funds, diverting some towards unrelated businesses and personal expenses for Eng Taing. Additionally, the defendants provided false information to investors about the profitability of their mining operations, which were affected by fluctuating energy costs and equipment problems.
Separately, Touzi Capital, under Taing’s leadership, secured an additional $23 million for a debt rehabilitation business. These funds were mingled with money from various other ventures. The SEC alleges that both investments were inaccurately portrayed as safe and stable high-yield accounts, despite being highly volatile and illiquid.
Despite these operational challenges, Taing and Touzi continued to market these securities to investors. The SEC’s lawsuit aims to hold them accountable for actions that misled investors and violated securities laws.
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