The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Touzi Capital and its CEO, Eng Taing, for allegedly orchestrating a $115 million fraud scheme that defrauded more than 1,500 investors across the United States.
The lawsuit revolves around unregistered securities related to cryptocurrency mining and debt rehabilitation projects. According to the SEC’s complaint, between 2021 and early 2023, Taing and his company raised $95 million for cryptocurrency mining ventures and an additional $23 million for debt rehabilitation programs.
These investments were marketed as stable and low-risk, with Taing even likening them to high-yield savings accounts. However, the SEC argues that these ventures were far from secure, describing them as speculative and illiquid, heavily reliant on risky third-party businesses.
Furthermore, the SEC claims that the funds were misappropriated, with money being diverted to unrelated projects and Taing’s personal expenses. Additionally, the company allegedly continued to solicit investments despite knowing that the projects were failing.
Investors reportedly received no response from Taing or Touzi Capital regarding their concerns. As part of the lawsuit, the SEC is seeking permanent injunctions, civil penalties, and a ban preventing Taing from holding executive positions in public companies in the future.