SEC Sues Touzi Capital: Defrauding Over 1,200 Crypto Investors

Touzi Capital accused of defrauding nearly $95 million

The U.S. Securities and Exchange Commission (SEC) has officially filed a lawsuit against investment company Touzi Capital, accusing it of defrauding more than 1,200 cryptocurrency investors, raising nearly $95 million. The SEC claims that Touzi provided misleading information about its crypto mining fund, causing many investors to fall into the trap.

False promises of profits from cryptocurrency mining

Touzi Capital promised that the fund would be used to invest in cryptocurrency mining activities. However, according to 25337035817, this money was used for unrelated business activities, while the company also “equated” the fund's risks with safe money market accounts, leading to investor misunderstandings.

High-risk fund, yet still accepting new investors

The SEC stated that Touzi's fund is not only risky but also illiquid. Even as investments began to incur losses, the company continued to solicit more investors, exacerbating the losses for stakeholders.

The legal future of the industry under Trump?

As Donald Trump re-elected as President of the United States, many experts, including Consensys CEO Joe Lubin, predict that lawsuits related to cryptocurrency may decrease. This could save the industry hundreds of millions of dollars in legal costs.

The Touzi Capital case serves as a warning for investors to exercise caution and conduct thorough research before participating in cryptocurrency projects.