The Securities and Exchange Commission (SEC) has filed a lawsuit against Touzi Capital and its CEO for allegedly orchestrating a $115 million cryptocurrency mining fraud scheme that affected approximately 1,500 investors.
According to the SEC's complaint, the company and its leadership allegedly misled investors through false promises of high returns from crypto mining operations. The regulatory body claims that Touzi Capital misrepresented how investor funds would be used and the actual state of their mining operations.
The SEC alleges that rather than building legitimate mining infrastructure as promised to investors, the company diverted substantial portions of the raised capital for unauthorized purposes. This includes personal expenses and payments to earlier investors in what investigators describe as a Ponzi-like scheme.
The case highlights growing regulatory scrutiny of cryptocurrency mining operations and investment schemes. If proven, this would rank among the larger crypto-related fraud cases pursued by the SEC in recent years.
The regulatory agency seeks:
- Return of allegedly ill-gotten gains
- Civil monetary penalties
- Permanent injunctions against the defendants
- Disgorgement of investor funds
Investors impacted by the alleged fraud span multiple states, with many having invested their retirement savings based on promises of steady returns from crypto mining operations.
The SEC's action serves as a reminder of ongoing efforts to protect retail investors from fraudulent cryptocurrency investment schemes. The case remains pending in federal court.
This story is developing...
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