SEC drags Touzi Capital to court over fraudulent activities
The post SEC drags Touzi Capital to court over fraudulent activities appeared on BitcoinEthereumNews.com.
The United States Securities and Exchange Commission (SEC) has initiated legal action against investment firm Touzi Capital. According to its filing, the SEC claimed the investment firm misled investors by lying about its liquidity and the potential profits users would earn from its crypto asset mining platform. In the statement published by the regulator, the firm defrauded about 1,200 United States investors. The regulator claimed that Touzi Capital misrepresented its capabilities, offering a fraudulent securities offering of its mining fund to investors. The SEC also revealed that it made a cumulative $95 million from the fraudulent scheme. The agency said the firm convinced investors by telling them to invest in their crypto mining platform, a claim the SEC found untrue. Touzi Capital lied to investors about its capabilities The SEC’s filing revealed that instead of carrying out the services it was paid for, it mixed all the funds from the investors and pushed it into other subsidiaries. Notably, the subsidiaries had no direct link to a crypto service or a mining facility. The SEC said Touzi Capital refused to explain the risks involved in its investment to investors, lying about the profitability level of its venture. The SEC also discussed the fund’s stability, showing dissatisfaction with how the firm presented it. “The SEC alleges that the defendants made materially false and/or misleading statements as to the stability of these investments – comparing them to high-yield money market accounts,” the filing read. The SEC also revealed that the investment was highly risky, with those in charge of its activities still accepting new customers even after things started to go bad. Uncertainty surrounds SEC cases amid dismissal threats There have been uncertainties surrounding the cases that the SEC has tried over the last few years, with some risking dismissal. For instance, a…
Filed under: News - @ December 1, 2024 8:30 am