The Securities and Exchange Commission (SEC) has launched a legal battle against Touzi Capitalaccusing the investment company of misleading investors regarding the profitability and liquidity of your crypto mining pool.
The firm supposedly deceived more than 1,200 American investorsraising nearly $95 million through security offerings on its mining investment.
According to the SEC statement released on November 29, Touzi Capital promoted the funds as a way to invest in mining operations. Unfortunately, the SEC maintains that this claim was misleading and false.
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Instead of investing in crypto mining, Touzi Capital is accused of use investor funds for unrelated companiesfunneling the money into other operations that had no connection to cryptocurrency mining.
The SEC allegations also include Misleading statements about investment stability and potential returns.. According to the statement, it says:
The SEC alleges that the defendants made materially false and/or misleading statements about the stability of these investments, comparing them to high-yield money market accounts.
In reality, the SEC argues, the fund was “risky and illiquid” and the company continued to accept new investors even as it faced mounting losses and failed investments.
As regulators crack down on fraudulent crypto schemes, the crypto world continues to face security challenges. Recently, five hackers were charged in an $11 million cryptocurrency theft. How did they manage to achieve it? Read the full story.
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