SECtook urgent action against BKCoin for running a $100 million ‘ponzi-like’ program.
BKCoinco-founder Kevin Kang is accused of misusing client funds to fund vacations, buy tickets to sporting events, and pay rent on his New York City apartment.
SEC Takes Urgent Action for Running a Ponzi-like Program on BKCoin
The U.S. Securities and Exchange Commission (SEC) granted emergency assistance Monday by a Florida court to appoint a buyer, freezing the assets of Miami-based crypto hedge fund BKCoin and one of its founders, Kevin Kang.
According to regulators, BKCoin and Kang raised $100 million from more than 50 investors and used some of the investor funds to make ponzi-like payments and for personal use.
SEC, BKCoin and Kang promised investors that their money would be used for crypto trading and that the funds would be held in separate managed accounts. However, Kang and BKCoin allegedly used at least $3.6 million in customer money to pay other investors and in other areas.
