SEC is suing BKCoin for alleged fraud

The Securities and Exchange Commission (SEC) continues its enforcement actions against the crypto industry, submit an emergency action against Miami-based crypto hedge fund BKCoin and its director Kevin Kang.

According to the SEC complaint, the hedge fund, which was launched in 2018 by co-founders Carlos Betancourt and Kevin Kang, raised $100 million from more than 55 investors to invest in crypto assets, which its director Keving Kang used to “Ponzi -like payments”. and for personal use.” Eric Bustillo, director of the SEC’s Miami Regional Office, said:

As we claim, investors entrusted their money to the defendants to trade crypto assets. Instead, the defendants embezzled their money, created false documents, and even engaged in Ponzi-like behavior.

Has BKCoin Committed the Biggest Scam in the Industry?

The SEC’s indictment against the Miami-based crypto hedge fund alleges that BKCoin and its principal, Keving Kang, “violated” the anti-fraud provisions of federal securities laws. According to the SEC’s filing, BKCoin and Kang guaranteed investors that the funds would be used to trade crypto assets and generate further profits for BKCoin through its separate managed accounts and five private funds.

In addition, Kang and BKCoin reportedly used more than $3.6 million to make “Ponzi-like” payments to fund investors. In this regard, the SEC alleges that Kang “embezzled” more than $371,000 in investor funds to pay for vacations, tickets to sporting events and an apartment in New York City.

According to the SEC’s complaint, Kevin Kang turned investors’ documents with “inflated” bank account balances to the third-party administrator for some of the capital they had raised since the crypto hedge fund’s launch.

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The complaint also accuses BKCoin of misrepresenting to its investors that the crypto hedge fund or any of the four funds had received an audit report from a “top four” auditor, when none of the funds ever received an audit report, according to the SEC. between 2018 and 2022.

According to the filing, the SEC’s enforcement action requires “permanent injunctions” against BKCoin and Kevin Kang, a remission, a precautionary interest and a civil penalty against both parties. Eric Bustillo concluded:

This action highlights our ongoing commitment to protecting investors and eradicating fraud in all securities industries, including the crypto asset arena.

BKCoin co-founder Kevin Kang was previously fired on Oct. 8 by BKCoin’s corporate body, BKCoin Management LLC, for allegedly misappropriating $12 million in assets from three multi-strategy funds, according to an Oct. 28 report. submit by the legal entity BKCoin for Miami-Dade County in the state of Florida.

The total market capitalization is still below the $1 trillion mark on the daily chart. Source: TOTAL

The global cryptocurrency market cap currently stands at $985.9 billion, still below the trillion dollars lost since last week’s Silvergate feud. Today, BTC’s market cap is $432 billion, dominating 40.36% of the sector.

On the other hand, the market cap of stablecoins is $136 billion, with a share of 12.7% of the total crypto market cap.

Featured image of Unsplash, chart from

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