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The US securities regulatory body filed a crypto fraud charge against an investment firm Touzi Capital.

The United States Securities and Exchange Commission (SEC) is the top financial regulatory body in the US jurisdiction. Over the last 4 years, the SEC body sued many crypto & non-crypto companies for unethical practices. In particular, the SEC body targeted many crypto companies over providing Crypto trading services, in the last two years. Under the leadership of the SEC chairman Gary Gensler, the SEC body filed a total of 583 enforcement actions in 2024, which is the highest in SEC history.

On November 29, 2024, The United States Securities and Exchange Commission (SEC) filed suit against Touzi Capital.
The SEC body accused this firm of defrauding more than 1,500 investors in the U.S.
According to the regulatory body, this firm raised $95 million for Bitcoin & crypto mining operations and another $23 million for debt rehabilitation from 2021-23.

The SEC body alleged Touzi Capital promoted its investments as fully safe and high-yield schemes, just like savings account funds.
An investigation by the SEC body noted that investment schemes offered by the firm were highly risky, and they were also dependent on uncertain third-party operations.

The list of charges against this investment firm also noted that the scheme’s Bitcoin mining business was false.
Although Touzi Capital & leaders promised to provide high profits through cheap energy contracts and advanced Crypto mining equipment, rising energy costs of operations and equipment problems made these promises untrue.

For all these unethical ways of raising money & failing to fulfil the promise to investors, the SEC agency charged Touzi Capital and its founder Eng Taing for running a $115 million crypto scam.

The American securities regulatory body also alleged that the raised funds were misused and pooled across unrelated businesses for Taing’s personal benefit.