YEREVAN (CoinChapter.com) — The United States Securities and Exchange Commission (SEC) filed a lawsuit against Touzi Capital, accusing the investment firm of defrauding over 1,200 U.S. investors through a deceptive crypto mining fund. According to the SEC’s statement released on Nov. 29, Touzi Capital raised nearly $95 million from investors under false pretenses.
The SEC alleges that Touzi Capital misled investors by claiming their funds would finance cryptocurrency mining operations. Instead, the company reportedly diverted the money to unrelated business ventures through its subsidiaries. This practice, according to the SEC, involved “commingling investor funds,” leaving the promised mining operations unfunded.
False Comparisons to Stable Investment Accounts
The SEC accuses Touzi Capital of downplaying the risks tied to its crypto mining fund. The firm allegedly marketed the investment as a stable option, comparing it to high-yield money market accounts. However, the SEC states these comparisons misled investors, as the fund was actually “risky and illiquid.”
Additionally, the company allegedly continued to solicit new investors even after its investments began to fail. This raised concerns about the firm’s transparency and accountability to investors who had already committed significant capital.
Touzi Capital Funds Used for Unrelated Ventures
The SEC claims Touzi Capital’s funds were funneled into projects that had “nothing to do with crypto mining.” By misrepresenting the intended use of funds, the company allegedly violated federal securities laws. The regulator emphasized that these actions posed substantial risks to investors who were unaware of the fund’s actual financial health and stability.
Notably, this lawsuit comes amid ongoing disputes between the SEC and other crypto-related firms. Recently, a U.S. federal judge denied an appeal to dismiss an SEC lawsuit involving Kristoffer Krohn. Krohn had also been accused of promoting a fraudulent crypto mining operation involving an $18 million scheme.
The post SEC Accuses Touzi Capital of Defrauding 1,200 Crypto Investors in $95M Scheme appeared first on CoinChapter.
