SEC accused Bkcoin of cryptocurrency fraud – Bits Media

United States Securities and Exchange Commission (SEC) accused of BKCOIN Management LLC in cryptocurrency fraud on $100 million.

The regulator claims, that in the period from October 2018 years to September 2022 years Director of BKCOIN Kevin Kang (Kevin Kang) I attracted around $100 Milln from 50 investors. He He assured them, that funds will be invested in crypto acts for subsequent profit. However, it turned out, that the project worked according to the financial pyramid scheme, and $3,6 Milln were spent on payments to new investors.

The SEC complaint also indicates, that instead of investment in cryptocurrencies, Kang assigned around $371 000 User means, Having spent them on buying an apartment in New York and tickets for sports events.

Kang tried to hide the unauthorized use of funds, Providing investors with falsified data with overstated bank account balance. He also provided investors with false information, that the activities of his company were verified by "one of the best auditors", Although in fact, BKCOIN has never applied for the services of audit companies.

“Investors entrusted their money to this company to trade cryptoactives. Instead, the accused illegally took advantage of their money, forged documents and even created a financial pyramid. This indicates the increased need to protect investors from securities fraud, As for crypto acts ", - said the head of the regional department of the SEC in Miami Eric and. Bustyle (Eric I. Bustillo).

Recall, that in February, the regulator sued Terraft Labs and its creator before Kwon (Do Kwon) for organizing fraud, which brought investors multi -billion dollar losses.