The US Securities and Exchange Commission (SEC) has filed a civil complaint against Touzi Capital and its CEO, Eng Taing, alleging securities violations.
The firm and its founder are accused of raising over $100 million through unregistered securities offerings, defrauding more than 1,200 investors between 2021 and 2023. The SEC claims that funds raised for crypto asset mining and debt rehabilitation businesses were commingled and misused, with some diverted for unrelated purposes or personal use.
Touzi Capital allegedly provided false assurances about the liquidity and stability of its investments, likening them to high-yield money market accounts, despite the risks involved. The SEC asserts that these funds financed a range of operations beyond the stated purposes, misleading investors about their profitability. The complaint also alleges continued recruitment of new investments even as the projects began failing.
The SEC is seeking a permanent injunction, disgorgement of profits with interest, civil penalties, and an officer and director bar against Taing. This case underscores the SEC’s focus on securities law enforcement, particularly in sectors like crypto and blockchain. Meanwhile, a parallel regulatory discussion is ongoing, with reports suggesting former President Donald Trump’s plans to transfer cryptocurrency oversight to the Commodity Futures Trading Commission (CFTC). This development could reshape the regulatory framework for the $3 trillion crypto market.
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