The United States Securities and Exchange Commission has targeted an investment adviser and individual allegedly connected to a $100-million cryptocurrency fraud in its latest enforcement action.
According to a March 6 announcement, the SEC filed an emergency action on Feb. 23 against investment adviser BKCoin and one of the principals, Kevin Kang, alleging the two “disregarded the structure of the funds, commingled investor assets, and used more than $3.6 million to make Ponzi-like payments to fund investors.” The financial regulator’s complaint alleged that BKCoin raised roughly $100 million from investors to invest in crypto, but Kang diverted some of the funds for personal use — including vacations, tickets to sporting events tickets and an apartment.