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SEC Files Complaint Against BKCoin And Co-Founder For Alleged $100 Million Scam

Press Releases Crypto News Bitcoinist SEC Files Complaint Against BKCoin And Co-Founder For Alleged $100 Million Scam

Many crypto investors have lost their funds in scams such as BKCoin. For instance, Bitcoinist reported that the DeFi sector recorded a whopping $678 million to hackers in the second quarter of 2022, confirming the risks inherent in the industry.

Surprisingly, these scams sometimes come in an official package, deceiving investors into thinking they’re legit. As alleged by the US Securities and Exchange Commission, a recent scam package is an offer from BKCoin and its co-founder. The commission has filed an emergency action against the financial advisory firm for defrauding investors.

BKCoin And Co-Founder Stole $100 Million, SEC Says

The SEC filed a complaint alleging that the defendants have stolen $100 million through a fraudulent crypto scam. The SEC shared a press release asserting that the defendants defrauded 55 investors between October 2018 and September 2022.

Total crypto market cap stands firm on the chart l Source: Tradingview.com

The company and its co-founder Kevin Kang had told the investors that they would use their funds to trade crypto assets, thereby earning them huge returns on their investments. The defendants even lied to the investors that they had received an audit opinion from a top-four auditor.

But instead of trading crypto with investors’ funds, the defendants used $3.6 million to pay out to others in the usual Ponzi scheme model. Then Kang allegedly misappropriated more than $370,000 for his interest, such as paying for holidays, buying a property in New York City, and paying for sporting events tickets.

After filing the emergency action, the commission froze some of the assets under BKCoin, alleging that the defendants violated the fe

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Author: Eli Dambell

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