{"id":18406,"date":"2023-03-07T03:50:16","date_gmt":"2023-03-07T03:50:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-files-emergency-action-against-bkcoin-in-100-million-crypto-fraud-scheme-regulation-bitcoin-news\/"},"modified":"2023-03-07T03:50:16","modified_gmt":"2023-03-07T03:50:16","slug":"sec-files-emergency-action-against-bkcoin-in-100-million-crypto-fraud-scheme-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-files-emergency-action-against-bkcoin-in-100-million-crypto-fraud-scheme-regulation-bitcoin-news\/","title":{"rendered":"SEC Files Emergency Action Against Bkcoin in $100 Million Crypto Fraud Scheme \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The U.S. Securities and Exchange Commission (SEC) has filed an emergency action against Miami-based investment adviser Bkcoin and one of its principals, Kevin Kang. \u201cThe defendants disregarded the structure of the funds, commingled investor assets, and used more than $3.6 million to make Ponzi-like payments to fund investors,\u201d the SEC alleged.<\/strong><\/p>\n

SEC\u2019s \u2018Emergency Action\u2019 Against Bkcoin, Kevin Kang<\/h2>\n

The U.S. Securities and Exchange Commission (SEC) announced Monday that it has filed an \u201cemergency action\u201d against Miami investment adviser Bkcoin and one of its principals, Kevin Kang, \u201cfor orchestrating a $100 million crypto fraud scheme.\u201d The securities regulator explained that \u201cit successfully obtained an asset freeze, appointment of a receiver, and other emergency relief\u201d against Bkcoin and Kang.<\/p>\n

The SEC detailed that from at least October 2018 through September 2022, Bkcoin raised approximately $100 million from at least 55 investors to invest in crypto assets. \u201cBkcoin and Kang assured investors that their money would be used primarily to trade crypto assets and represented that Bkcoin would generate returns for investors through separately managed accounts and five private funds,\u201d the securities regulator detailed, adding:<\/p>\n

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The defendants disregarded the structure of the funds, commingled investor assets, and used more than $3.6 million to make Ponzi-like payments to fund investors.<\/p>\n<\/blockquote>\n

The complaint alleges that Kang misappropriated at least $371,000 of investor money to pay for vacations, sporting event tickets, and a New York City apartment, among other things. Furthermore, \u201cKang attempted to conceal the unauthorized use of investor money by providing altered documents with inflated bank account balances to the third-party administrator for certain of the funds,\u201d the SEC further said.<\/p>\n

Moreover, Bkcoin allegedly made material misrepresentations to some investors by falsely claiming that either the company or one of its funds had received an audit opinion from a \u201ctop four auditor.\u201d However, neither Bkcoin nor any of its funds actually received an audit opinion at any time.<\/p>\n

The securities regulator alleged that Bkcoin and Kang \u201cviolated the antifraud provisions of the federal securities laws.\u201d The SEC seeks permanent injunctions against both defendants, as well as disgorgement, prejudgment interest, and a civil penalty. In addition, the complaint calls for an officer and director bar and conduct-based injunction against Kang.<\/p>\n

What do you think about this case? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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