"How can the SEC not be busy attacking if crypto companies don't want to behave."
The Securities and Exchange Commission (SEC) of the United States (US) took action against the cryptocurrency hedge fund company BKCoin and their co-founder named Kevin Kang for allegedly defrauding digital assets worth $100 million.
It is widely known that a Florida court gave approval to the SEC to freeze the assets of the Miami-based company.
According to authorities, BKCoin and Kang have gathered more than 50 investors and used some of the funds they generated for personal use and made payments like a ponzi scheme.
Kang was terminated from his post in December 2022 after the SEC charged him with exploiting $12 million worth of investor funds to go on vacations, buy a condo in New York City and a number of other things.
While BKCoin was found to be deceiving investors by saying that they had obtained an audit opinion from four top audit officers, when the fact is that neither BKCoin nor any other company can receive an audit at any time.
Speaking about BKCoin's ongoing misappropriation, SEC Miami Regional Office Director Eric I.Bustillo said investors entrusted their money to the defendants to trade in crypto but the defendants misused their money to create fake documents and ponzi schemes.
Following that, Bustillo intends to take more aggressive action to protect investors and eliminate fraud in the crypto market by implementing civil penalties and injunctions against BKCoin including Kang.
