SEC accuses Touzi Capital of defrauding 1,200 investors of $95 million

The U.S. Securities and Exchange Commission (SEC) has filed charges against Touzi Capital. The agency says the firm deceived its clients with promises of crypto investments, collecting $95 million from them.

According to authorities, the company suggested that lenders invest in mining companies between 2021 and 2023. In total, Touzi Capital employees managed to attract funds from 1,200 clients.

In fact, investors' assets were never directed to operations related to the cryptocurrency mining industry. The company's owners mixed creditors' funds with their own money, and then distributed them to subsidiaries.

The agency believes that Touzi Capital misled investors by hiding information about the financial risks and profitability of its cryptocurrency asset fund. According to the agency, the company misappropriated client funds and disposed of them at its discretion.

«The Commission seeks a permanent injunction, the return of illegally obtained profits with interest until the court decision is made and civil sanctions against each of the defendants, as well as a ban on activities as officers and directors», — the SEC press release states.

The Commission members emphasized that Touzi Capital continued to attract funds from clients even after its business began incur losses. Financial problems did not stop the company's management from further deceiving investors.