$115 Million Fraud Scheme Exposed in Massive SEC Lawsuit Against Crypto Firm

The U.S. Securities and Exchange Commission (SEC) has taken legal action against Touzi Capital and its CEO, Eng Taing, over allegations of a $115 million fraud scheme that deceived over 1,500 investors across the country.

The lawsuit centers on unregistered securities tied to crypto mining and debt rehabilitation ventures.

According to the SEC’s complaint, Taing and his company raised $95 million for cryptocurrency mining projects and an additional $23 million for debt rehabilitation programs between 2021 and early 2023.

These investments were marketed as stable and low-risk, with Taing even comparing them to high-yield savings accounts. However, the SEC argues that the ventures were far from secure, labeling them speculative and illiquid, with heavy reliance on risky third-party businesses.

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The SEC also claims that the funds were misused, with money being diverted across unrelated projects and to Taing’s personal expenses. Moreover, the company allegedly continued to solicit investments despite knowing that the projects were failing.

Investors have reportedly been left in the dark, with no responses from Taing or Touzi Capital regarding their concerns. As part of the lawsuit, the SEC is pushing for permanent injunctions, civil penalties, and a ban preventing Taing from holding leadership positions in public companies in the future.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.