SEC sues Touzi Capital and its CEO for alleged $115 million cryptocurrency mining fraud

BlockBeats news, on November 30th, according to DL News, the US Securities and Exchange Commission (SEC) filed a lawsuit against Touzi Capital and its CEO Eng Taing, accusing them of alleged $115 million unregistered securities issuance fraud. According to the lawsuit, from 2021 to early 2023, the defendant raised approximately $118 million through false advertising of cryptocurrency mining and debt restructuring businesses, including $95 million for cryptocurrency mining projects and $23 million for debt restructuring projects, involving over 1500 investors across the United States. The SEC stated that Taing falsely advertised the project as a "stable and predictable" high-yield savings account investment, but in reality, these investments were "highly speculative and lacked liquidity". The SEC accuses the defendant of misappropriating investor funds for personal purposes and continuing to solicit investors even after the business began to collapse. In the fiscal year 2024, the SEC initiated 583 enforcement actions and received a record breaking $8.2 billion in financial compensation.