SEC Takes Action Against Firm for Allegedly Misleading Crypto Mining Investors
The U.S. Securities and Exchange Commission (SEC) has filed charges against Touzi Capital, accusing the investment firm of misleading over 1,200 U.S. investors about the liquidity and profitability of its cryptocurrency mining fund.
According to the SEC’s statement on November 29, the firm raised nearly $95 million through its security offerings but allegedly misrepresented the fund’s operations.
Touzi Capital had marketed the investment as supporting crypto mining ventures, but the SEC claims that the funds were instead diverted to unrelated business activities within its subsidiaries. The firm allegedly misled investors regarding both the risks and returns of the mining fund, presenting it as a stable, high-yield investment comparable to money market accounts. In reality, the fund was “illiquid” and “risky,” and continued accepting new investments even as its assets began to fail.
READ MORE: Could 2025 Be the Year Dogecoin Gets Its Own ETF?
This case follows a broader trend of legal actions taken by the SEC against crypto-related businesses. In another development, a federal judge recently ruled against the dismissal of a lawsuit concerning a fraudulent $18 million crypto mining scheme, further highlighting the regulator’s ongoing crackdown.
Despite these legal challenges, some industry leaders, like ConsenSys CEO Joe Lubin, suggest that the situation could change if Donald Trump is reelected. Lubin expressed optimism that future legal battles involving crypto firms might be resolved more favorably, potentially saving the industry significant amounts of money.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
