The U.S. SEC sues Touzi Capital and its CEO for alleged $115 million cryptocurrency mining fraud case

On November 30, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Touzi Capital and its CEO Eng Taing, accusing them of an alleged $115 million unregistered securities issuance fraud case. According to the complaint, from 2021 to early 2023, the defendants raised approximately $118 million in funds through false promotion of cryptocurrency mining and debt restructuring businesses, including $95 million for crypto mining projects and $23 million for debt restructuring projects, involving more than 1500 investors nationwide.

The SEC stated that Taing falsely promoted the projects as stable and predictable high-yield savings account investments when in fact these investments were highly speculative and lacked liquidity. The SEC accused the defendants of misappropriating investor funds for personal purposes and continuing to solicit investors even after their business began to collapse. In fiscal year 2024, the SEC initiated a total of 583 enforcement actions, obtaining a record-breaking financial compensation of $8.2 billion. (DL News)