SEC Files Emergency Action Against Bkcoin in $100 Million Crypto Fraud Scheme

The U.S. Securities and Exchange Commission (SEC) has filed an exigency enactment against Miami-based concern advisor Bkcoin and 1 of its principals, Kevin Kang. “The defendants disregarded the operation of the funds, commingled capitalist assets, and utilized much than $3.6 cardinal to marque Ponzi-like payments to money investors,” the SEC alleged.

SEC’s ‘Emergency Action’ Against Bkcoin, Kevin Kang

The U.S. Securities and Exchange Commission (SEC) announced Monday that it has filed an “emergency action” against Miami concern advisor Bkcoin and 1 of its principals, Kevin Kang, “for orchestrating a $100 cardinal crypto fraud scheme.” The securities regulator explained that “it successfully obtained an plus freeze, assignment of a receiver, and different exigency relief” against Bkcoin and Kang.

The SEC elaborate that from astatine slightest October 2018 done September 2022, Bkcoin raised astir $100 cardinal from astatine slightest 55 investors to put successful crypto assets. “Bkcoin and Kang assured investors that their wealth would beryllium utilized chiefly to commercialized crypto assets and represented that Bkcoin would make returns for investors done separately managed accounts and 5 backstage funds,” the securities regulator detailed, adding:

The defendants disregarded the operation of the funds, commingled capitalist assets, and utilized much than $3.6 cardinal to marque Ponzi-like payments to money investors.

The ailment alleges that Kang misappropriated astatine slightest $371,000 of capitalist wealth to wage for vacations, sporting lawsuit tickets, and a New York City apartment, among different things. Furthermore, “Kang attempted to conceal the unauthorized usage of capitalist wealth by providing altered documents with inflated slope relationship balances to the third-party head for definite of the funds,” the SEC further said.

Moreover, Bkcoin allegedly made worldly misrepresentations to immoderate investors by falsely claiming that either the institution oregon 1 of its funds had received an audit sentiment from a “top 4 auditor.” However, neither Bkcoin nor immoderate of its funds really received an audit sentiment astatine immoderate time.

The securities regulator alleged that Bkcoin and Kang “violated the antifraud provisions of the national securities laws.” The SEC seeks imperishable injunctions against some defendants, arsenic good arsenic disgorgement, prejudgment interest, and a civilian penalty. In addition, the ailment calls for an serviceman and manager barroom and conduct-based injunction against Kang.

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