Compass Investments

– The SEC has accused Touzi Capital of $100 million in securities violations

the SEC has filed a civil suit against Touzi Capital and its CEO Eng Taing, according to a press release. The company was accused of defrauding more than a thousand investors during an unregistered securities offering that raised more than 1 billion pounds.

The commission’s complaint also alleges that the defendant misled investors about the management of proceeds from these offerings. According to the SEC, Touzi Capital and its CEO raised capital through false and misleading statements, as well as commingled and misappropriated investor funds.

These statements included statements about the liquidity of investments and other factors related to their profitability. An example is Touzi Capital, which offers investment opportunities in blockchain, private equity, and real estate.

The SEC monitors misconduct in the securities sector, including the cryptocurrency sector. However, CoinGape recently reported that Donald Trump plans to give the U.S. Commodity Futures Trading Commission (CFTC) oversight of the ¥3 trillion cryptocurrency market, including blockchain technology.

Touzi Capital and Taing made unregistered securities offerings of cryptoasset mining funds between 2021 and early 2023, according to the SEC complaint. The company claimed the money was intended to support the operations of certain cryptoasset mining companies. It raised about 1,200 million pounds from more than 9,500 investors nationwide.

But the organization appears to be deceiving investors on this issue. The SEC alleges that the defendants distributed the funds to a large number of companies, some of which had nothing to do with crypto asset mining.

It also highlights the involvement of company executives who allegedly misappropriated some of the funds for personal use and misled investors about the profitability of their business operations.

The SEC also alleges that Touzi Capital raised about 2,300 million yen to restructure its debt. However, it commingled these funds with funds it received from its cryptoasset mining business and other unrelated businesses.

Furthermore, the SEC alleges that Touzi Capital misled investors about the stability of these investments and equated them to high-yielding financial market accounts, despite the fact that the assets were illiquid and risky. However, the SEC alleges that it continued to solicit additional investments even after Touzi began to fail.