Hideo Nakamura The U.S. Securities and Exchange Commission (SEC) has taken a major step in combating cryptocurrency fraud schemes by filing an emergency action against Miami-based investment adviser Bkcoin and one of its principals, Kevin Kang. In the complaint, the SEC alleges that the defendants are operating a Ponzi-like scheme, diverting and dissipating customer assets to the tune of $100 million dollars. The SEC is now seeking an emergency order to prevent further shenanigans, sending a strong message to those who would attempt to engage in such fraudulent activities.
SEC Takes Action Against Cryptocurrency Scam
The US Securities and Exchange Commission (SEC) announced an Emergency Action against Bkcoin and one of its principals, Kevin Kang. According to the SEC’s complaint, Bkcoin and Kang were engaged in a fraudulent scheme that raised approximately $100 million from at least 55 investors for cryptocurrency asset trading. In response to this fraud, the SEC froze assets, appointed a receiver and took other measures against Bkcoin and Kang.
Kang allegedly misappropriated investor money and provided altered documents to auditors. He also misled investors about the nature of Bkcoin’s activities, including claiming that the company was registered with the SEC as a securities broker-dealer when it did not have such registration. Moreover, Bkcoin used investor funds for personal expenses, such as buying luxury cars, expensive jewelry and vacations.
The SEC is seeking permanent injunctions, disgorgement of ill-gotten gains plus interest, and civil penalties against both defendants. The Commission’s complaint also seeks preliminary and permanent orders enjoining the defendants from future violations of Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a) of the Securities Exchange Act of 1934 along with Rule10b-5 thereunder.
Ultimately, this Emergency Action demonstrates the SEC’s commitment to protecting investors from fraudsters who attempt to take advantage of unsuspecting individuals by engaging in illegal activity. The Commission remains vigilant in monitoring activity in order to prevent illicit misconduct in our financial markets.
The Securities and Exchange Commission (SEC) has taken an emergency action against the crypto currency fraud scheme involving Bkcoin and its founder Kevin Kang. This is a clear warning to anyone considering investing in crypto that scams are rampant. Those who attempt to commit similar fraud risk significant fines and legal consequences. It is always important to thoroughly research before investing in any cryptocurrency, as the SEC is actively monitoring for deceptive or manipulative activities in the crypto market.
