Investor Alert: SEC Files Complaint Against Touzi Capital | Goodman & Nekvasil, P.A.
Goodman & Nekvasil, P.A. is speaking with an investor who purchased Touzi Capital from his financial adviser.
The U.S. Securities and Exchange Commission (SEC) has recently filed a complaint against Touzi Capital (and affiliated entities), alleging that it raised funds from investors through deceptive practices and misrepresentations. The SEC claims Touzi’s offerings involved misleading statements about the nature, safety, and performance of its investments, as well as inadequate disclosures of risks and conflicts of interest.
According to the SEC’s complaint, Touzi Capital solicited investors by pitching these investments as low risk, stable, or high return. In reality, the SEC alleges, the underlying ventures lacked liquidity, transparency, and often did not perform as promised.
The SEC’s complaint alleges that the defendants misled investors about the use of investor proceeds by commingling and misappropriating investor funds, and raised capital through false and misleading statements about the liquidity of their investments and other factors material to the investments’ profitability.
SEC Files Complaint Against Touzi Capital
Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your adviser.
Why This Matters to Investors
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Misleading marketing & omissions: The complaint asserts that Touzi misrepresented or omitted critical risk factors, creating a false sense of security among investors.
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Illiquidity & valuation risk: Many of Touzi’s offerings lacked formal market quotations, making it difficult or impossible for investors to exit or determine fair value.
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Conflicts of interest & self-dealing: Part of the SEC’s case alleges that Touzi benefitted at the expense of investors through undisclosed fees or affiliate transactions.
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Potential broker misconduct: Because some of these offerings were sold via intermediaries, brokers or financial advisors may have failed to perform adequate due diligence or misrepresented the investments to you — which may give rise to legal claims.
According to the SEC’s complaint, Touzi Capital offered two primary classes of investment products: (1) crypto asset mining funds, for which it raised nearly $95 million under the promise of stable returns from mining operations, and (2) a debt rehabilitation business, raised at about $23 million, ostensibly to invest in distressed debt restructuring. The complaint further alleges that investor funds raised for these separate offerings were improperly commingled, and in many cases, were diverted to unrelated business operations.
The complaint also states that defendants falsely portrayed the crypto mining investments as low-risk, stable vehicles akin to high-yield money market accounts, despite their speculative and illiquid nature.
Moreover, the SEC alleges that Touzi and its managing member, Eng Taing, misused investor funds for personal expenses and failed to disclose the actual risks, while continuing to offer the securities even as operational results declined.
Broker Due Diligence
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Firms that fail to do so may be held responsible for any losses in a FINRA arbitration claim.
If you believe that your investments in Touzi Capital may have been unsuitable or otherwise improper for you, we would like to discuss the possibility of your retaining our firm to represent you in an arbitration action.
There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. If we don’t recover money for you, we charge no attorney’s fee.
Goodman & Nekvasil, P.A. has recovered more than $500 million on behalf of victimized investors. If you lost money on investments in unsuitable investments and would like your case evaluated by a securities attorney, please contact us.
Some of the information in this blog post was obtained from the SEC and FINRA on 10/14/25. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442