- Touzi Capital was further charged by the SEC of deceiving investors on the potential risks and profitability.
- When the fund’s investments began to fail, the SEC labeled it as risky and illiquid.
US authorities have sued investment firm Touzi Capital, claiming the company misled investors over the fund’s profitability and liquidity of its cryptocurrency asset mining fund.
The US Securities and Exchange Commission (SEC) released a statement on November 29 alleging that Touzi Capital raised about $95 million from more than 1,200 US investors. By concealing the crypto asset mining fund’s securities offerings.
Deceiving Investors Allegations
Crypto mining activities were supposedly promoted to investors as a means to raise capital for the investment. But according to the SEC, this wasn’t the case. However, Touzi Capital “commingled investor funds” among its affiliate companies. Directing the capital into projects that were completely unrelated to cryptocurrency mining. Touzi Capital was further charged by the SEC of deceiving investors. On the potential risks and profitability of its cryptocurrency mining asset fund.
When the fund’s investments began to fail, the SEC labeled it as “risky and illiquid.” And said it kept taking in new investors. It follows a US federal judge’s denial of an appeal to dismiss an SEC case against the promoter of a crypto mining corporation accused of running a $18 million fraud scheme.
The argument put out by Kristoffer Krohn in his failed appeal was that the Green Boxes had not been shown to be investment contracts or securities offerings by the SEC in its complaint.
The United States Securities and Exchange Commission has announced that its chair, Gary Gensler, would be leaving his position in the next year. Since the election of Donald Trump as president, Gensler has been the target of calls for his resignation.
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