The Securities and Exchange Commission (SEC) is suing Touzi Capital, a crypto mining company, and its boss, Eng Taing, for a massive fraud. They’re accused of ripping off investors to the tune of $115 million.
The Scam
From 2021 to early 2023, Touzi Capital and Taing sold unregistered investments in their crypto mining operation to over 1,200 people. They raised about $95 million, promising high returns. But the SEC says Touzi Capital mismanaged the money, using some for unrelated businesses and Taing’s personal expenses. They also lied about how profitable the mining operation actually was – it was struggling with high energy costs and equipment problems.
Another Fraudulent Scheme
That wasn’t the only scam. Touzi Capital, under Taing’s leadership, also got another $23 million for a debt rehabilitation business. This money was also mixed up with funds from other ventures. Investors were falsely told these investments were safe and stable, like high-yield money market accounts, when they were actually risky and hard to sell. Even when things went south, Taing and Touzi kept selling these investments.
The SEC’s Action
The SEC’s lawsuit, filed in California, accuses Touzi Capital and Taing of various securities violations. If found guilty, they could face:
- A permanent ban from similar activities.
- Having to pay back all profits made from the fraud (disgorgement).
- Hefty fines.
- Taing could be banned from being a company officer or director.
Market Update (Unrelated)
As a side note, the total value of the cryptocurrency market is currently around $3.32 trillion.
