SEC Ends A $100 Million Crypto Scam In Miami

On Monday, the SEC announced a startling emergency action against BKCoin Management in Miami to combat an alleged fraud scheme. Reports indicate that investors were swindled out of $100 million, which was then used by management for personal luxuries and “Ponzi-like payments.” This is yet another heartbreaking case demonstrating why crypto crackdowns are absolutely necessary within the U.S. financial system.

Charges Against BKCoin Include Fraud, Forgery, and Misuse of Investor Money

The SEC has accused Kevin Kang of BKCoin Management, a principal in the company, of misappropriating a staggering $371,000 from its investors to pay for holidays and an apartment. Eric I. Bustillo, Director of the Miami Regional Office, said, “the defendants not only stole investor funds but also created false documents and even utilized Ponzi-like strategies.” Moreover, according to the complaint presented by the SEC, they commingled more than $3.6 million with investor assets while making payments promised through their fraudulent scheme.

The SEC declared today that it had already seized assets and obtained further rapid relief against the company in question. Along with this, they are also seeking permanent court orders prohibiting BKCoin and Kang from any similar actions in the future, returning all ill-gotten money along with interest due to investors, a hefty fine for both parties as well as an injunction preventing Kang from holding or taking part in any executive position at the organization going forward.

The SEC Has Been Quite Tough Against The Crypto Industry Lately

The SEC has kept a strict eye on the crypto industry for years. Since 2018, in particular, they have been relentless in their pursuit of token sales and ICOs as unregistered securities sales. Now under Gary Gensler’s watchful gaze at its helm, this ongoing crackdown has become even more severe – with his assertion that virtually all digital coins and tokens (with Bitcoin being an exception) are considered to be unauthorized investments.

This year, the SEC has been making a strong stance against high-profile companies that have violated securities laws by issuing unregistered securities. Genesis and Gemini were charged in January, while American crypto exchange Kraken had to pay an immense fine of $30 million for their infractions earlier this month.

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