Crypto Advisor Sued For $100 Million Ponzi Scheme

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Last Updated on 6 November 2023 by CryptoTips.eu

The US stock market watchdog SEC (Securities and Exchange Commission) continues its series of repressive actions against crypto companies and seems determined to arrest fraudsters. After the debacles surrounding FTX and the Silvergate bank, the SEC is clearly not prepared to miss another crypto scandal. This time, started a lawsuit against crypto platform BKCoin which it accused of defrauding its own investors for about $100 million.

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100 million dollars

According to the SEC, BKCoin sold crypto to investors under the guise of funding the development of their own crypto exchange platform. However, the SEC now says the company never even launched a platform nor did it comply with applicable regulations in the United States. Even worse, the money would have been embezzled for personal purposes. A kind of Ponzi fraud scheme, but with crypto coins if you will.

According to the complaint against BKCoin and its founder Kevin Kang, the company also allegedly exaggerated the number of users and transactions on its platform in order to attract even more investment.

The complaint also alleges that Kang used at least $371,000 of the money for personal expenses such as vacations, tickets to sporting events and a New York apartment. He tried to cover up the unauthorized use of the money by amending documents showing “inflated bank account balances to the third-party administrator,” the SEC said.

davidtran07 / Depositphotos.com

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
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