2021, Bkcoin and Kang allegedly raised over $100 million from investors by making false and misleading statements about their investment strategies and returns. The SEC claimed that the defendants promised investors that their funds would be invested in cryptocurrencies and other digital assets, but instead, they used the money to make Ponzi-like payments to earlier investors and to enrich themselves.
According to the SEC, Bkcoin and Kang also allegedly commingled investor assets and disregarded the structure of the funds, which resulted in significant losses for investors. The SEC further alleged that Kang used investor funds to purchase luxury cars, jewelry, and other personal expenses.
The SEC’s emergency action seeks to prevent Bkcoin and Kang from continuing to defraud investors and to recover the ill-gotten gains. The SEC also seeks to impose civil penalties and to bar Kang from serving as an officer or director of any public company.
“Investors should be wary of investment opportunities that promise high returns with little or no risk,” said Gurbir S. Grewal, Director of the SEC’s Enforcement Division. “As alleged in our complaint, Bkcoin and Kang lured investors with false promises and then misused their money for personal gain.”
The SEC’s action against Bkcoin and Kang is the latest in a series of enforcement actions against fraudulent cryptocurrency schemes. The SEC has warned investors to be cautious when investing in cryptocurrencies and to thoroughly research any investment opportunity before investing.
