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

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Touzi Capital and its CEO, Eng Taing, alleging a $115 million fraud scheme that misled more than 1,500 investors nationwide.

The case focuses on unregistered securities offerings tied to crypto mining and debt rehabilitation businesses.

According to the SEC complaint, Taing and Touzi Capital raised $95 million for cryptocurrency mining projects and another $23 million for debt rehabilitation initiatives between 2021 and early 2023. The investments were marketed as “stable and predictable,” and Taing reportedly likened them to high-yield savings accounts. But the SEC alleges the investments were far from safe, describing them as “highly speculative and illiquid” ventures that relied on risky third-party operations.

The complaint also alleges that the funds raised were shuffled between unrelated businesses and misappropriated for Taing’s personal use. The SEC also accuses Touzi Capital of concealing operational failures and continuing to solicit funds from investors even when the businesses began to collapse.

“Touzi Capital’s investors have not received a response from the company or Taing,” the SEC said, alleging that Taing has stopped contacting affected parties.

The SEC is seeking permanent injunctions, civil penalties, and an officer and director ban against Taing to prevent Taing from leading public companies in the future.

*This is not investment advice.