- BKCoin collected almost $100 million from a minimum of 55 investors.
- The defendants utilized over $3.6M in investor money to create Ponzi-like payments.
For masterminding a $100M crypto fraud plan, the U.S. Registration (SEC) mentioned Monday it had filed an “emergency action” against Miami investment consultant BKCoin and something of their proprietors, Kevin Kang. “It effectively acquired a good thing freeze, the appointment of the receiver, along with other emergency relief,” the securities regulator stated of their actions against BKCoin and Kang.
Based on the SEC, between a minimum of October 2018 and September 2022, BKCoin collected almost $100 million from a minimum of 55 investors to place into crypto assets. The securities regulator stated that BKCoin and Kang informed participants their money could be utilized largely to trade crypto assets which BKCoin would create profits for investors via individually managed accounts and five private funds.
Violated Antifraud Provisions
The defendants utilized over $3.six million in investor money to create Ponzi-like payments to investors within the funds without regard towards the funds’ structure or even the investors’ assets.
The suit claims that Kang stole a minimum of $371,000 from investors and tried on the extender to purchase a brand new You are able to City flat, continue lavish holidays, and purchase tickets to sports occasions. Additionally, Kang searched for to cover the incorrect use of investor money by presenting altered documentation with exaggerated banking account balances towards the third-party operator for a few of the funds, the SEC stated.
The securities agency stated that BKCoin and Kang “violated the antifraud provisions from the federal securities laws and regulations.” The SEC is requesting disgorgement, prejudgment interest, along with a civil penalty additionally to permanent injunctions against both defendants. The situation also requests an injunction according to Kang’s actions along with a prohibition from becoming a police officer or director.