SEC Charges Touzi Capital with $115 Million Crypto Fraud
Date: 2024-12-02 Author: Oliver Abernathy Categories: BUSINESS
The SEC alleges that Touzi Capital raised $95 million for cryptocurrency mining projects and $23 million to pay off debts between 2021 and 2023. However, instead of using the funds for their intended purpose, they were allegedly redistributed to other projects unrelated to the stated activities, as well as for the personal needs of the company's founder, Ang Taing.
According to the SEC, Touzi Capital misled more than 1,500 investors by advertising its projects as safe and high-yield investments. In fact, they were based on risky operations dependent on third parties. The SEC also noted that the company’s claims that Bitcoin mining was profitable due to cheap electricity contracts and modern equipment were false. In practice, the company faced high energy price fluctuations and frequent technical failures, which undermined its stated profitability.
The SEC’s complaint states that investors were left in the dark after the company’s operations collapsed, and communications with its executives were cut off. The commission is seeking to injunctive relief, fines, and the return of funds to affected investors. In addition, the SEC is seeking to ban Taing from holding management positions in companies.
This case is part of a broader SEC campaign to strengthen oversight of the cryptocurrency market. In fiscal year 2024, under the leadership of Gary Gensler, the SEC filed a record 583 lawsuits and collected $8.2 billion in fines and compensation. Gensler plans to leave his post in January, leaving behind a strict enforcement policy on financial misconduct.
