According to a press release published today, the SEC has filed an emergency action against Miami investment adviser BKCoin for a $100 million crypto fraud scheme. Specifically, the press release cites co-founder Kevin Kang and states that they have frozen the assets of the adviser.
The US Securities and Exchange Commission has accused the advisor of orchestrating the scheme from October 2018 through September 2022. Moreover, they have stated the firm’s obtaining over $100 million from “at least 55 investors,” for the purpose of investing in crypto assets.
SEC Executes Emergency Action over Crypto Fraud
The US Securities and Exchange Commission has continued its crackdown on the crypto sector. Subsequently, the regulators have targeted a Miami investment adviser. Specifically, the SEC has filed he emergency action against BKCoin for a $100 million crypto fraud scheme.
According to a press release issued today, the regulators have stated the scheme took place over the course of several years. Specifically, occurring from October 2018 to September 2022. Moreover, it states that the advising firm raised capital from 55 different investors for the purpose of investing in digital assets.
The press release specifically named BKCoin co-founder Kevin Kang and targeted how the firm utilized the raised capital. Stating that the firm “instead used some of the money to make Ponzi-like payments and for personal use.” Additionally, noting that the misuse of the funds came after Kang, and BKCoin, assured investors the capital would be “used primarily to trade crypto assets,” according to the press release.
Specifically, Kang and BKCoin “used more than $3.6 million to make Ponzi-like payments to fund investors.” Additionally, stating, “Kang misappropriated at least $371,000 of investors’ money,” for the purposes of “vacations, sporting event tickets, and a New York City Apartment.”