The US Securities and Exchange Commission (SEC) has filed a legal complaint against investment firm Touzi Capital, accusing them of deceiving investors about the liquidity and profitability of their cryptocurrency mining fund.
According to the SEC, Touzi Capital raised nearly $95 million from over 1,200 US investors through security offerings for their crypto mining fund. However, the investment was allegedly misrepresented as funding crypto mining operations.
In reality, the company is accused of intermixing investor funds and using them for unrelated ventures. The SEC also alleges that Touzi Capital provided false information about the risks and profitability of their crypto mining fund, comparing it to investments with high returns.
The commission stated that the fund was actually risky and difficult to liquidate, yet Touzi Capital continued to attract new investors even as their investments began to suffer.
