The Securities and Exchange Commission (SEC) has taken emergency action against Miami-based investment adviser BKCoin Management LLC and its principal, Kevin Kang, for allegedly orchestrating a crypto asset fraud scheme. The SEC alleges that BKCoin raised around $100 million from at least 55 investors to invest in crypto assets, but instead used some of the money for Ponzi-like payments and personal use.

According to the SEC’s complaint, BKCoin and Kang assured investors that their money would be used primarily to trade crypto assets and generate returns for investors through separately managed accounts and private funds. However, the defendants allegedly disregarded the structure of the funds, commingled investor assets, and used over $3.6 million to make Ponzi-like payments to fund investors. Kang also allegedly misappropriated at least $371,000 of investor money for personal expenses.

The SEC is seeking permanent injunctions, disgorgement, prejudgment interest, and civil penalties against both defendants, as well as an officer and director bar and conduct-based injunction against Kang.

The post SEC Takes Emergency Action Against $100 Million Crypto Fraud Scheme appeared first on Ledgernomic.

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Filed under: News - @ March 6, 2023 5:30 pm