On Monday, the U.S. Securities and Exchange Commission (SEC) filed an emergency action against a Miami-based crypto hedge fund and its co-founders for allegedly running a fraudulent scheme. Here is a summary of the details:
Allegations
- BKCoin Management LLC, a Miami-based investment adviser, and its principal Kevin Kang allegedly ran a $100 million Ponzi-like scheme involving cryptocurrency investments and misrepresenting investor returns.
- The SEC alleges that the fund raised more than $100 million from over 1,000 investors across the United States and internationally through misrepresentations about the nature and performance of their investments, among other things.
Emergency Relief Obtained
- The SEC successfully obtained an asset freeze, appointment of a receiver, and other emergency relief against BKCoin Management LLC and Kevin Kang.
- The Florida court granted the emergency relief requested by the SEC to freeze and appoint a receiver for the fund’s assets.
SEC’s Efforts to Protect Investors
- The SEC has been actively pursuing fraudsters in the cryptocurrency industry in recent years.
- In addition to this case, the SEC filed an emergency action charging an offshore fund and two individuals engaging in a fraudulent scheme and obtained an asset freeze to safeguard remaining investor funds at risk of immediate dissipation.
Step-by-Step Process
- The SEC files an emergency action against a Miami-based crypto hedge fund and its co-founders for allegedly running a fraudulent scheme.
- The SEC alleges that the fund raised more than $100 million from over 1,000 investors through misrepresentations about the nature and performance of their investments, among other things.
- The SEC successfully obtained an asset freeze, appointment of a receiver, and other emergency relief against the fund and its co-founders.
- The Florida court granted the emergency relief requested by the SEC to freeze and appoint a receiver for the fund’s assets.
- The SEC has been actively pursuing fraudsters in the cryptocurrency industry in recent years.
- In addition to this case, the SEC filed an emergency action charging an offshore fund and two individuals engaging in a fraudulent scheme and obtained an asset freeze to safeguard remaining investor funds at risk of immediate dissipation.