America Securities and Trade Fee, or SEC, has focused an funding adviser and particular person allegedly linked to a $100-million cryptocurrency fraud in its newest enforcement motion.
In accordance with a March 6 announcement, the SEC filed an emergency motion on Feb. 23 in opposition to funding adviser BKCoin and one of many principals Kevin Kang, alleging the 2 “disregarded the construction of the funds, commingled investor property, and used greater than $3.6 million to make Ponzi-like funds to fund traders”. The monetary regulator’s criticism alleged that BKCoin raised roughly $100 million from traders to put money into crypto, however the agency and Kang diverted a number of the funds for private use.
“As we allege, traders entrusted their cash to the defendants to commerce in crypto property,” mentioned Eric Bustillo, Director of the SEC’s Miami Regional Workplace. “As a substitute, the defendants misappropriated their cash, created false paperwork, and even engaged in Ponzi-like conduct. This motion highlights our continued dedication to defending traders and uprooting fraud in all securities sectors, together with the crypto asset enviornment.”
It is a growing story, and additional info will probably be added because it turns into out there.