SEC orders to freeze investment funds behind a $100 million multi-level plan

BKCoin co-founder Kevin Kang misappropriated client assets and splurged on luxury vacations, events and apartments.

The SEC ordered to freeze the investment fund behind the $100 million multi-level plan – Photo: CryptoSlate

On March 6, the United States Securities and Exchange Commission (SEC) along with a Florida court urgently issued a decision to prosecute the case, freezing the assets of the Miami-based cryptocurrency fund BKCoin and being impounded. can Kevin Kang.

According to investigateBKCoin and co-founder Kevin Kang attracted 50 participants and collected about 100 million USD at least since October 2018, then used this money for “Ponzi-like payments” (taking money from people). pay later) and personal interests.

The multi-level management team has promised to bring investors’ money to crypto trading as well as a commitment to segregate this asset in separate accounts and 5 funds. However, the suspect mixed customer funds and used at least $3.6 million to pay other investors.

According to the indictment, Kang misappropriated at least $371,000 in customer funds to pay for vacations, sporting events and his New York apartment. Kang “disguised” with fake documents, inflated bank account balances to lure prey into traps. The investigation is still being conducted by the SEC.

Over the past time, the SEC has continuously shown a tough stance and acted to suppress the crypto industry. As of 2018, the Commission began keeping an eye on token sales and ICOs, a form of crypto fundraising that the SEC has consistently cited as an unregistered securities offering. SEC Chairman Gary Gensler recently reiterated that “essentially, every coin and token – apart from Bitcoin – is a security”.

Back last month, the US Securities and Exchange Commission convicted eight individuals of fraud against CoinDeal. Many other big names were also touched by the SEC, for example, Genesis – Gemini, Paxos – BUSD for allegedly providing unregistered securities and crypto trading platform Kraken, with a fine of 30 million USD and order to shut down forever. exchange staking service of the exchange.

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