SEC Takes Action: BKCoin & Co-Founder Swindle $100M in Crypto Scam

• The US Securities and Exchange Commission is taking action against a crypto scam, BKCoin and its co-founder, alleging that they have stolen $100 million from investors.
• The defendants had promised investors huge returns on their investments by trading crypto assets, but instead used the funds to pay out to others in a Ponzi scheme model.
• The SEC has frozen some of the assets under BKCoin and seeks a permanent injunction against the duo as well as disgorgement from Bison Digital LLC for receiving $12 million from BKCoin.

SEC Fights Against Crypto Scam: BKCoin And Co-Founder Stole $100 Million

The US Securities and Exchange Commission (SEC) has filed an emergency action against financial advisory firm, BKCoin and its co-founder for defrauding investors of up to $100 million. Bitcoinist reported that the DeFi sector recorded a whopping $678 million loss to hackers in the second quarter of 2022, highlighting the risks inherent in the industry.

Alleged Scam Package From BKCoin And Its Co-Founder

According to SEC’s complaint, between October 2018 and September 2022, 55 investors were deceived into thinking they were investing in a legitimate package offered by BKCoin and its co-founder Kevin Kang. Investors were told that their funds would be used to trade crypto assets which will generate huge returns on investment. However, this was not true as only $3.6 million were used for trading while more than $370,000 was misappropriated by Kang using it for personal interest such as buying properties and paying for holidays or sporting events tickets.

SEC Freezes Assets Under BKCoin And Seeks Permanent Injunction Against Duo

In light of this wrongdoing, SEC froze some of the assets under BKCoin and seeks a permanent injunction against them both as well as disgorgement from related company: Bison Digital LLC who received around $12 million from BKCoin’s activities. This case serves to remind people about the dangers of investing in digital assets without proper due diligence or research into what one is getting into or even worse falling prey to false promises made by fraudsters online or offline.

Noteworthy Crackdowns On Scammers By SEC

Aside from this case with BKCOin and its co-founder, SEC also took legal steps against other fraudulent schemes operating within cryptocurrency industry such CoinDeal’s alleged pump & dump operations which costed investors millions of dollars worth losses before being charged with securities fraud violation by SEC earlier this year.

Takeaways

Investors need do their own due diligence before investing in anything whether it is cryptocurrency related or otherwise especially when someone approaches them with promises of guaranteed high return on investment which may sound too good to be true because majority times it usually is!

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