US SEC files lawsuit against Touzi Capital for false allegations of use of cryptocurrency mining funds

The U.S. Securities and Exchange Commission (SEC) has filed legal action against investment company Touzi Capital for alleged investment fraud. According to a statement released by the SEC on November 29, Touzi
Capital is accused of raising approximately $95 million (approximately 14.3 billion yen) from more than 1,200 U.S. investors through the sale of securities for a cryptocurrency mining fund and defrauding investors in the process.
The fund advertised to investors that it would be used to fund cryptocurrency mining operations, but the SEC alleges that this claim is false.
According to the SEC, Touzi Capital mixed investor funds into multiple businesses, including subsidiaries, of which a significant amount was unrelated to cryptocurrency mining.
The company also allegedly provided misleading information to investors about the risks and potential returns of their investments.
"The defendants allegedly used these investments in stable, high-yield money market accounts," the SEC said in a statement.
The suit also alleged that the fund was a risky and illiquid investment and that it continued to solicit new investors even after investment losses began.
I was told I continued to do so.