The US Securities and Trade Fee (SEC) has filed an emergency motion in opposition to Miami-based funding advisor Bkcoin and considered one of its purchasers, Kevin Kang. “The defendants disregarded the construction of the funds, commingled buyers’ property and used greater than $3.6 million to make Ponzi-like funds to fund buyers,” the SEC alleged.
SEC’s ’emergency motion’ in opposition to Bkcoin, Kevin Kang
The US Securities and Trade Fee (SEC) introduced on Monday that it has filed an “emergency swimsuit” in opposition to Miami funding advisor Bkcoin and considered one of its principals, Kevin Kang, “for orchestrating a $100 million crypto fraud scheme.” The securities regulator defined that “it obtained an asset freeze, appointment of a receiver and different reduction” in opposition to Bkcoin and Kang.
The SEC described that from at the least October 2018 to September 2022, Bkcoin raised roughly $100 million from at the least 55 buyers to spend money on crypto property. “Bkcoin and Kang assured buyers that their cash would primarily be used to commerce cryptoassets and represented that Bkcoin would generate returns for buyers by way of individually managed accounts and 5 personal funds,” the securities regulator mentioned, including:
The defendants disregarded the construction of the funds, commingled buyers’ property and used greater than $3.6 million to make Ponzi-like funds to fund buyers.
The grievance alleges that Kang misused at the least $371,000 of investor cash to pay for holidays, tickets to sporting occasions and an house in New York Metropolis, amongst different issues. Additional, “Kang tried to hide the unauthorized use of investor funds by offering altered paperwork with inflated checking account balances to the third-party administrator for among the funds,” the SEC additional mentioned.
As well as, Bkcoin allegedly made materials misrepresentations to some buyers by falsely claiming that both the corporate or considered one of its funds had obtained an audit opinion from a “prime 4 auditor.” Nevertheless, neither Bkcoin nor any of its funds obtained an audit opinion at any time.
The securities regulator alleged that Bkcoin and Kang “violated the anti-fraud provisions of the federal securities legal guidelines.” The SEC is in search of everlasting injunctions in opposition to each defendants, in addition to disgorgement, prejudgment curiosity and a civil penalty. As well as, the grievance seeks an officer and director bar and conduct-based injunction in opposition to Kang.
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