SEC targets BKCoin for alleged $100 million fraud

The United States Securities Commission has taken legal action against investment advisor Kevin Kang. The SEC filed an emergency action against the pair on 23rd February, accusing them of disregarding the structure of the funds. Therefore, SEC targets BKCoin for alleged $100 million fraud. It is blending investors’ assets using more than 3.6 million to pay investors like Ponzi schemers. 

According to the complaint, BKCoin raised $100 million from investors for cryptocurrency investments, but Kang diverted some funds for personal use. He allegedly spent money on holidays, tickets to sporting events and an apartment. The SEC’s legal action is the latest in a series of efforts by the regulator to crack down on alleged cryptocurrency related to security violations.

According to our allegations, Eric Bustillo, director of SEC’s Miami Regional Office, said investors entrusted their money to the defendants. Instead, the defendants misappropriated their money, creating false documents and even engaging in Ponzi-like conduct. 

However, this action highlights our continued commitment to protect investors and to uproot fraud in all securities sectors. SEC targets BKCoin for alleged $100 million fraud therefore, regular intends to seek emesis, prejudgment interest and civil penalties against BKCoin and Kang. Not only this but a permanent injunction against both parties.

Critics have accused the SEC of using enforcement actions rather than courts to label some cryptocurrencies as securities. Many in the space have singled out chair Gary Gensler for criticism.

Gensler had overseen a series of anti-crypto actions at the agency. According to reports last week, crypto exchange Binance attempted to hire him as an adviser in 2018 and 2019 before he was appointed SEC chair.