The US Securities and Exchange Commission (SEC) has taken legal action against BKCoin Management LLC and its Co-Founder Kevin Kang, accusing them of defrauding investors with a fraudulent crypto scheme. The SEC claims that the Miami-based financial advisor firm raised $100 million from at least 55 investors between October 2018 and September 2022, promising significant returns on their investment by trading cryptocurrencies.
However, the SEC alleges that BKCoin and Kang used $3.6 million of the total sum to pay for personal expenses, including luxury cars, private jets, and expensive jewelry. The agency also claims that the defendants misled investors by providing false information about their trading activities and returns.
The SEC has filed an emergency action against BKCoin and Kang, seeking to impose financial penalties on the organization and a conduct-based injunction against Kang. The regulator has also requested that the court freeze the defendants’ assets and appoint a receiver to manage the company’s affairs.
The SEC’s action against BKCoin and Kang is part of its ongoing efforts to crack down on fraudulent crypto schemes. The agency has warned investors to be cautious when investing in cryptocurrencies and to thoroughly research any investment opportunity before committing their funds. The SEC has also urged investors to report any suspicious activity to its enforcement division.
