According to an SEC complaint filed in the Southern District of California, the founder of Touzi Capital defrauded more than 1,500 US investors. From 2021 to early 2023, the company conducted a number of unregistered ICOs, raising about $95 million for mining projects. The regulator claims that Touzi Capital mixed client money with funds from its enterprises, some of which had nothing to do with mining. Taing embezzled the raised capital and spent it on personal needs, while lying to investors about the profitability of the projects, the authors of the lawsuit believe.
Additionally, Touzi Capital has raised nearly $23 million for its debt rehabilitation business. Some of this capital was also mixed with funds from mining projects. According to the SEC, Taing made misleading statements regarding the stability of these investments and high returns compared to savings accounts when, in fact, these investments were risky and illiquid. However, Thaing continued to attract investors even after his business began to “sink”, the department said.
The SEC accused Taing and Touzi Capital of violating securities laws, asking the court to impose a permanent ban on the organization. The regulator is also seeking the return of ill-gotten profits with interest pending a judgment, an administrative fine and a ban on Taingu from holding any leadership positions.
The SEC reported that the amount of fines collected from crypto companies in 2024 increased by 65.5% and reached a new record of $8.2 billion. After the new administration of Donald Trump comes to power, the US Commodity Futures Trading Commission (CFTC) may receive powers to regulate the crypto industry ).
Source: Bits
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